North American Summary and Highlights 19 Sep
Overview - In a subdued session the USD saw gains versus JPY, CHF and GBP but slipped versus the CAD.
North American session
The USD saw some early gains but these were quickly reversed, leaving the USD little changed against most currencies, USD/JPY near 148 and EUR/USD near 1.1750. USD/CAD did slip to 1.3775 from above 1.38. Canadian retail sales fell by 0.8% in July as expected but the preliminary indication for August saw a bounce of 1.0%.
European morning session
The USD was mixed through the European morning, gaining against the JPY, CHF and GBP, but falling back against the AUD, with EUR/USD not much changed.
GBP fell back early in the session after a much higher than expected PSNB for August, increasing concerns about the UK fiscal situation. This dominated the impact from a slightly stronger than expected retail sales reading in August. EUR/GBP gained nearly 40 pips to peak at 0.8729 before dropping back, but held above 0.87.
Otherwise there was little news through the morning, with AUD strength and JPY and CHF weakness likely reflecting some equity gains through the morning following a weaker tone overnight.