North American Summary and Highlights 30 Oct
Overview - The USD was generally firmer, but lost momentum after the ECB was slightly more upbeat while leaving policy unchanged.
North American session
The ECB left policy unchanged as expected though the statement was slightly more upbeat. EUR/USD having slipped from above 1.16 found a base near 1.1550 and edged up to around 1.1570, though this dip looked more like a correction in EUR/USD with EUR/GBP and EUR/CHF little changed. USD/JPY saw ,kittle movement but remained firm slightly above 154. Early pressure on equities saw USD/CAD move above 1.40 but this was not sustained. AUD/USD similarly found a base after a dip below .6550.
European morning session
The JPY continued to weaken through the European morning, extending overnight losses following the Fed and BoJ decisions, with USD/JPY gaining around half a figure to 153.95. The USD was generally slightly firmer across the board, gaining 0.1-0.2% against the other G10 currencies.
The EUR was generally slightly firmer on the crosses helped by stronger than expected Eurozone GDP data. This showed a Q3 rise of 0.2% q/q, with France leading the way at 0.5% with export led growth. The European Commission survey was also slightly encouraging, with the business and consumer survey index at its highest since June 2023. German state CPI data mostly showed a modest decline in y/y inflation, broadly consistent with the expected dip in the national CPI to 2.2% (y/y (HICP basis) due later.