European Summary and Highlights 28 May
In a quiet European morning, EUR/USD was little changed near 1.0875 while USD/JPY gained around 20 pips to trade above 156.90.
European morning session
In a quiet European morning, EUR/USD was little changed near 1.0875 while USD/JPY gained around 20 pips to trade above 156.90. The USD was also generally slightly firmer elsewhere, with AUD and CAD both losing 0.1-0.2% and GBP/USD also marginally softer. The CHF outperformed with USD/CHF down 15 pips to 0.9105.
EUR/SEK fell back around 4 figures to 11.47 helped by comments from Riksbank governor Theeden saying a June rate cut is not on the cards. EUR/NOK gained slightly to trade above 11.40.
Datawise there as little of interest. German WPI rose 0.4% in April and Norwegian retail sales fell 0.3% (core).
Asia session
Shanghai has announced property sector support measures by cutting payment requirement and lowering rates, to further support the local Chinese property market. Regional sentiment in China and Hong Kong are positive and lends support to the Aussie. The Australian Retail Sales for April also came in slightly lower than estimate, but reverted the contraction of March, at 0.1% m/m. The domestic demand is forecasted to be soft for longer and any growth should be appreciated. AUD/USD is trading 0.22% higher at 0.6668, NZD/USD is trading 0.15% higher at 0.6159 while USD/CAD slipped 0.07% on higher oil.
As USD/JPY hovers around 157, we are hearing more jawboning from Suzuki, repeating it is important currencies move in a stable manner reflecting fundamentals. But what really giver JPY a few bids are higher Japan Services PPI at 2.8% y/y. Higher service PPI would be welcoming for the BoJ if they decided to further tighten, supporting the JPY. USD/JPY is trading 0.01% lower at 156.79 as JGB's strength outpace U.S. Treasury Yields. Else, EUR/USD is up 0.17% and GBP/USD is up 0.05%.