North American Summary and Highlights 26 October
Overview - The USD was slightly firmer with the EUR unable to manage a bounce on France relief.
North American session
In a session with no significant data The USD opened firmer but the gains faded entering the afternoon, with the USD still slightly firmer overall. USD/JPY stabilized around 157.50. EUR/USD dipped to 1.1180 and a correction failed to regain to 1.12 handle. EUR/GBP was slightly softer near .8380 having touched above .84 in Europe. The USD also saw early gains versus AUD and CAD which were largely reversed.
European session
Some early week respite as French spreads ease off after Moody’s opts not to downgrade from Aa3, with 10s in about 6bp to around 160~, off from last week’s 177 high – though the intraday look below this key break level support hasn’t been sustained, as things stand.
EUR/USD remains around 1.12 +/- currently nudging fractionally below after not managing a bounce clear. Euro crosses seeing a little bit more consolidation, up around ¼ %, after fast runs and with wider risk steadier (some bounce for equities in the session, especially European, and volatility nudging off).
Oil off around $2~ helped by reports that officials from Saudi Arabia, Turkey and Pakistan to meet Iran in Tehran today. German October Ifo business climate 90.2 from 89.9 (mkt 90.0), highest since May 2023.