Europe Summary and Highlights 30 Jun
Soft Eurozone inflation prints so far.
EUR/USD sticks around 1.14 into options
USD/JPY sits off high after period end support
European morning session
Soft batch of Eurozone national/state inflation prints so far this morning, tending to support the contention that it may have peaked out already
Italian HICP 3.1% y/y vs 3.2% expected. This follows German state that was generally softer than expected, suggesting a y/y deceleration of around 0.2pp in the national figure due shortly. French HICP earlier was also a clear downside miss at 2.0% vs 2.3% expected and 2.8% previously.
While bond supportive, DE2s testing the recent 2.5% pullback yield support, EUR/USD sticking largely sideways this morning not straying far from the large 1.14 options level that dominates today and so far proving magnetic.
USD/JPY sitting just off the 40-year highs at 162.40~ seen overnight, as quarter/month end proves supportive for the pair.
UK Q1 GDP confirmed at 0.6%/q
Asia Session
As USD/JPY busted through 162 level, we hear from multiple Japanese officials that "they will respond appropriately to currency moves at any time". The jawboning has slowed but not stop the rally in the pair. Solid May employment data did not help the JPY. USD/JPY is trading 0.16% higher at 162.18.
The broader risk mood continue to improve on the second trading day of the week. The lack of development in the Middle East is deafening and could sag risk sentiment in the later session. AUD/USD is trading 0.21% lower at 0.6873. NZD/USD is trading 0.07% lower while USD/CAD rises 0.14%. Else, EUR/USD is down 0.27% and GBP/USD is down 0.22%.