Europe Summary and Highlights 2 Jan
A quiet European morning saw EUR/USD edge a little lower, dropping 20 pips to 1.1725.
European morning session
A quiet European morning saw EUR/USD edge a little lower, dropping 20 pips to 1.1725. Downward revisions in Eurozone manufacturing PMIs helped the decline, with the Eurozone index showing its second straight decline to 48.8. UK PMI was also revised lower, but remained higher in December than November at 50.6, but GBP fell with the EUR with EUR/GBP only slightly lower at 0.8715. The Eurozone money data was, however, a little stronger than expected with M3 up 3.0% y/y and loans to households up 2.9% y/y.
The EUR was fairly steady against the scandis but otherwise fell back against the JPY, CHF and commodity currencies which were all unchanged against the USD.
Asia session
The USD/JPY is heading north on the second day of the new year. It is reported earlier that Trump has decreased the proposed tariff on Italian pasta import significantly. USD/JPY is trading 0.33% higher at 156.85.
The risk sentiment is upbeat for U.S. major equity indexes. HSI is also posting more than a percent of gains. AUD/USD is trading 0.37% higher at 0.6698, NZD/USD is also trading 0.09% higher while USD/CAD slips 0.08%. Previous metal remains volatile but today is support for these commodity currencies. Else, EUR/USD is down 0.08% and GBP/USD is up 0.05%.