North American Summary and Highlights 31 Oct
Overview - The USD was slightly stronger, most notably versus the EUR.
North American session
The EUR slipped in North America, EUR/USD to 1.1525 from 1.1570, EUR/GBP to .8775 from .8815 and EUR/CHF to .9275 from .9290. GBP/USD found a base near 1.31 and recovered to 1.3140 but USD/CHF was slightly firmer above .8140. There was not much change in USD/JPY, which edged only marginally below 154, or AUD/USD which remained near .6540.
August Canadian GDP was significantly weaker than expectations at -0.3% , which lifted USD/CAD to above 1.4030 but a return below 1.4020 followed with BoC still seen unlikely to ease again near term. Several Fed officials sounded hawkish, Schmid explaining his recent hawkish dissent while Logan and Hammack, both voters in 2026, stated they also opposed the latest move. Bostic said he backed the latest move but sounded cautious going forward. None of these comments however suggested a significant shift from their previously expressed views.
European morning session
The USD was generally not much changed through a quiet European morning. EUR/USD recovered to 1.1570 after a dip to 1.1560 at the open, while USD/JPY dropped back to 154.10 after a test of the recent highs at 154.40. USD/CAD was slightly higher at 1.4010, and EUR/NOK gained 3 figures to 11.67, but in general there was little change.
Datawise, German September retail sales were in line with consensus at 0.2% m/m, suggesting a mild deterioration in the recent trend. German import prices were slightly higher than expected at -1.0% y/y. Equities were mostly slightly lower, while bond yields were slightly higher, but there was little in the way of market moving news.