North American Summary and Highlights 14 September
Overview - The USD was firmer on the day but corrected off its highs led by moves in oil.
North American session
Eyes were on the oil price which came off the highs as did the USD, though the USD remained firmer on the day. Equities were also pressured by AI concerns but came off the lows. The 10 year yield corrected from a brief move above 5%. There was no significant US data. August Canadian CPI was as expected, unchanged at 3.0% yr/yr, with the BoC core rates largely stable too.
USD/JPY touched 155 before correcting to 154.30. EUR/USD found support above 1.1520 before recovering to 1.1550. EUR/GBP and EUR/CHF saw little movement in North America, remaining lower. AUD/USD bottomed near .7110 before recovering above .7140. USD/CAD rose to 1.3925 before correcting to 1.39.
European session
A negative risk slant to start the week, tending to bolster the dollar across the board, especially into the FOMC. Energy prices still feeling upward pressure, albeit with Brent currently shy of last week’s highs, given the widening disruption concerns from Saudi’s pipeline to Bab el-Mandeb Strait.
AI exposed/investor stocks also weighed by labs agreeing to slow development and with OpenAI delaying its IPO from this year. Nasdaq off almost 2% following pressure in Asia tech stocks overnight.
EUR/USD caught a little offside on the trading side out of last week, and resetting from 1.16 to 1.1550 and below, skewing back now to the lower 1.16 support focus in the wider range. USD/JPY re-testing last week’s bounce resistance. Risk/USD (NZD, SEK…) weighed further.