North American Summary and Highlights 9 September
Overview - Slippage in the USD was reversed as UST yields bounced on the Treasury buyback announcement.
North American session
The USD opened slightly softer but bounced as the US Treasury announced a $6bn bond buyback, falling short of some forecasts. Moves were moderate, USD/JPY moving above 153.60 from 153.25. EUR/CHF advanced but gains in EUR/GBP were erased. USD/CAD moved above 1.38 while AUD/USD fell to 0.7215 from 0.7230. Oil remained firm and equities were under pressure in a session with no significant data.
European session
Quiet European morning for news and action, some fading of the Asia moves as the market holds into the main events later in the week. Brent tests $100 on the ongoing US-Iran exchanges.
USD/JPY re-tested to near the week lows in Asia before paring on the hold – top-heavy but still consolidating the recent fast run into the 153/2s, amid oversold conditions. Bit of impetus from the headlines late Tuesday from Bessent that ‘he is the house now’, his intervention on the yen coming with 'pretty good insight into what the BoJ and Japan policy makers are going to do'.
USD/JPY action tending to lead still, so leaking into some overnight dollar slippage, again trimming in the European morning.
ECB, and then US inflation data, over Thu-Fri still the next main focal point. Some attention though on the later announcement later today on the buyback size for the first op. since the 'at least double' commitment.