North American Summary and Highlights 25 Nov

North American session

The USD weakened through the North American session with a modest late correction. A 0.2% rise in September retail sales, 0.3% ex autos, 0.1% ex autos and gasoline, and accompanied by an on consensus 0.3% rise in September PPI, that saw a below consensus 0.1% rise in the core rate ex food and energy. The initial USD dip on the data was quickly corrected, but subsequently resumed. November consumer confidence at 88.7 from 95.5 provided another below consensus release, though October pending home sales were stronger than expected with a rise of 1.9%. 

USD/JPY found support below 156 after falling from 156.50, perhaps cushioned by resilient equities. EUR/USD rose to 1.1565 from 1.1530, underperforming GBP/USD, though the latter was unable to sustain a move above 1.32. USD/CAD slipped to 1.41 from 1.4120 while AUD/USD rose to .6470 from .6450.  

European morning session 

The USD was slightly softer through the European morning, with the JPY making the biggest gains, USD/JPY falling from 156.65 to 156.40. EUR/USD gained 15 pips to 1.1535, and GBP kept pace with the EUR. But AUD and CAD were little changed against the USD, as were the scandis, while USD/CHF was higher, rising 10 pips to 0.81 as EUR/CHF gained 20 pips to 0.9340.  

There wasn’t much news of note. German final Q3 GDP was unrevised at 0.0% q/q, while Swedish PPI rose 0.4% m/m in October. Equities we broadly flat while bond yields were marginally lower.