US Dollar Weakness Boosts Euro
The euro rose against the US dollar, as the rebound of the Chinese yuan exerted pressure on the USD/CNY pair, which reduced demand for the US dollar across the entire spectrum of the market. The single currency shrugs off another batch of weak German economic data. Australian Dollar is trading as the strongest one today, boosted by easing risk aversion, followed by euro. British pound is the second weakest one as worries over no-deal Brexit continues to weigh.
Global stocks were mostly higher today. DAX rose by 0.86%, CAC grew by 0.83% and FTSE was up 0.99%. Nikkei closed up 0.69%, Singapore Strait Times gained 1.66% while Hong Kong HSI increased 1.54%. China Shanghai SSE jumped by 2.74% to 2779.37.
German trade surplus narrowed to EUR 21.8B (EUR 19.3B seasonally adjusted) in June. Exports rose 7.8% yoy to EUR 115.5B. Imports rose 10.2% yoy to 93.7B. Industrial production fell by 0.9% mom in June, worse than expectation of -0.5%.
Economic data from Japan showed, that Japan nominal labor cash earnings rose by 3.6% yoy in June versus expectation of 1.7% yoy. Real wages grew 2.8% yoy, the fastest pace in 21 years since January 1997. Regular pay grew 1.5% yoy. One-off payment including bonuses jumped an impressive 7.0% yoy. Overtime pay also rose 3.5% yoy, a notable acceleration of 2.0% yoy in May. Japan overall household spending decreased by 1.2% yoy in June, matched expectations. Leading index fell to 105.2 in June, down from 106.9 and missed expectation of 105.4.