Europe Summary and Highlights 8 October
FX markets were quiet through the European morning. The only move of note was in the CHF, with EUR/CHF gaining around 25 pips to 0.9405, helped by modest equity market gains through the morning after a soft start after the declines in Chinese equities overnight.
European morning session
FX markets were quiet through the European morning. The only move of note was in the CHF, with EUR/CHF gaining around 25 pips to 0.9405, helped by modest equity market gains through the morning after a soft start after the declines in Chinese equities overnight. Otherwise, EUR/GBP did see some gains mid-session, but these had largely disappeared by the end of the morning. USD/JPY was also lower mid-session, hitting 147.40 at one point, but recovered back to opening level near 148 by the end of the morning.
Swedish September CPI data came in in line with consensus at 0.2% m/m, while German industrial production rise more than expected at 2.9% m/m in August, but neither had any market impact.
Asian session
Labor cash earning continues to grow strongly at 3% y/y in August while overall household improve by 2% m/m. While the data may not be as strong as forecast, it continues to point to a consumption rebound for Japan in Q3. However, Japan economy minister Akazawa left a remark after August labor cash earning data being released and says that the drop in real wages is not good news. He also voiced support that the Japanese government will create favorable environment for wage hikes but so far are just words. Both the U.S. Treasury and JGB yields are falling but the later fares better and see USD/JPY slipping 0.07% to 148.07.
Returning from the week long Chinese holiday, the Chinese equities market opened sharply higher by almost 9%. But as no new stimulus being announced so far in the NDRC conference, gains have halved and dragged the antipodeans lower. AUD/USD is trading 0.29% lower at 0.6737 while NZD/USD and USD/CAD both unchanged. EUR/USD is up 0.11% and GBP/USD is up 0.09%.