North American Summary and Highlights 5 Dec

North American session

The main move of the session was a fall of around a big figure in USD/CAD to 1.3840 after Canadian employment data unexpectedly saw a third straight strong increase, of 53.6k in November, with unemployment at 6.5% from 6.9% the lowest since July 2024. 

Later US data gave the USD a modest lift elsewhere, with September personal income stronger than expected at 0.4%, though spending at 0.3% and core PCE prices at 0.2% were in line. The preliminary December Michigan CSI bounced to 53.3 from 51.0, assisted by lower inflation expectations. USD/JPY rose to 155.30 from 155.20 while EUR/USD fell to 1.1640 from 1.1660.  

European morning session 

The USD gained ground through the European morning, with the JPY the biggest loser, USD/JPY rising 60 pips to 155.10. EUR/USD dropped a modest 10 pips to 1.1650, with other European currencies seeing similar losses, but AUD/USD gained 10 pips to 0.6635.  

German October manufacturing orders data was stronger than expected, rising 1.5% m/m, while French October industrial production was also stronger than expected at 0.2% m/m, and Eurozone Q3 GDP was revised up slightly to 0.3% q/q, although the y/y rate was unrevised at 1.4%. The EUR gained slightly initially after the German orders data, but gains were short-lived. There was no obvious trigger for JPY losses, which only reversed overnight gains.