European Summary and Highlights 09 May
The USD edged higher through the European morning, gaining a little ground against everything but GBP, with GBP/USD little changed.
European morning session
The USD edged higher through the European morning, gaining a little ground against everything but GBP, with GBP/USD little changed. EUR/USD lost around 20 pips to 1.0730, while USD/JPY gained around 30 pips to 155.95. AUD and CAD held up a little better, both only losing around 10 pips.
Newswise there wasn’t a great deal of note, with the Bank of England MPC meeting awaited.
Asia session
BoJ summary of opinion shows more hawkish members as more calls for steady rate hike to cover inflation overshooting. However, the subsequent disappointing wage data brings out the caveat, BoJ only supports rate hike if inflation continue to be higher. The March cash earning shows an increase of 0.6% y/y, missing estimates of 1.5% and slowed from 1.8% in February. It is disappointing because it is in March when the wage negotiation showed the most progress and should have witnessed stronger growth. USD/JPY rebounded from session low at 155.14 to 155.61 and is up 0.08% for the session with both the U.S. Treasury and JGB yields higher.
Regional sentiment is more vibrant than their U.S. counterpart even when Country Garden (Chinese property developer) says it will delay bond payment. Aussie seems to be dragged slightly lower by 0.06% against the USD to 0.6575 with NZD/USD also down 0.06% to 0.6000 while USD/CAD rose 0.07% to 1.3729. Else, EUR/USD is down 0.05% and GBP/USD is down 0.07%.