Europe Summary and Highlights 8 November
USD/JPY dropped around half a figure in the European morning session as the equity rise seen after Trump’s election victory went into reverse.
European morning session
USD/JPY dropped around half a figure in the European morning session as the equity rise seen after Trump’s election victory went into reverse. Equities were generally lower, led by a sharp drop in Chinese equities at 08:00 GMT. Other than against the JPY the USD was generally unchanged to slightly firmer. AUD/USD dropped 15 pips to 0.6635, but EUR/USD was only very marginally lower. Yields were generally lower and US yields are now little changed from pre-election levels.
There was little data of any note, with just a slightly larger than expected French trade deficit for September and mixed Swedish industrial data, with weaker orders and stronger production.
Asian session
The Japan September Overall Household Spending has contracted by 1.3% m/m and remained in negative territory y/y. It seems to suggest the reluctance of Japanese consumer to consume at high prices as we expected. BoJ may have to revise their trend inflation lower soon if such persist. More verbal intervention came out from Kate, Japanese finance minister’s mouth as USD/JPY stays elevated. However, there does not seem to be an escalation of rhetoric which suggests actual intervention may not be imminent. It still curbed USD/JPY and see it trading 0.12% lower at 152.74.
On the last trading day of the week, market participants seems taking it easy and patiently waiting for the next week to place their bets. Risk sentiment is mixed with regional and U.S. three major equity indexes all performing individually. USD is broadly stronger except against the JPY and see the AUD/USD down 0.45% to 0.6650, NZD/USD slips 0.21% to 0.6013 while USD/CAD rose 0.16%. Else, EUR/USD is down 0.15% and GBP/USD is down 0.14%.