FXStreet (Barcelona) – Paul Fage, Senior Emerging Markets Strategist at TD Securities, summarizes the financial market performance during the European trading session, noting that the price action remains quiet ahead of the US nonfarm payrolls report.
Key Quotes
“The European session has been fairly quiet this morning ahead of today’s employment reports in the US and Canada. USDJPY has ratcheted slightly higher to trade around 124.75 despite comments from Japan’s Chamber of Commerce that “further yen weakening was undesirable”. NOK is the largest mover of the day among major currencies with EURNOK 1.2% higher after Norwegian industrial production fell sharply in April and a downbeat Regional Network Report from the Norges Bank cemented expectations for a rate cut at their 18 June policy meeting.”
“European fixed income markets continue to trade with a softer tone; 10y bund yields are +4 bps to 0.87% in the wake of a stronger-than-expected factory orders report out of Germany; 10y gilts are 2 bps higher at 2.05%.”
“The major European equity indices are following most Asian markets lower with the EURO STOXX 50 benchmark down 1.1%.”
“Oil prices are softer after OPEC was seen keeping its production target unchanged at its meeting today in Vienna; Brent crude is down 0.4% to $61.75/bbl.”
(Market News Provided by FXstreet)