North American Summary and Highlights 4 Sep
Overview - The USD was marginally firmer ahead of the non-farm payroll, though Thursday’s US data was mixed.
North American session
The USD made modest gains in a subdued North American session. ADP employment data was weaker than expected with a rise of 54k in August, and the USD slipped, USD/JPY getting close to 148. However, the dip was quickly reversed, despite the next round of data failing to impress. Initial claims rose to a higher than expected 237k from 229k, and a July trade deficit of $78.3bn, up from, $59.1bn in June was in line with expectations. Q2 non-farm productivity was revised up to a stronger than expected 3.3% from 2.4%.
August’s ISM services index was stronger than expected at 52.0 from 51.5 which helped extend USD gains, USD/JPY moving above 148.50, though the gains faded in late trade. USD/CHF was also slightly firmer but EUR/USD was little changed near 1.1650. GBP, AUD and CAD also ended little changed versus the USD.
European morning session
The USD was generally marginally firmer through the European morning, gaining around 0.1% against the EUR, JPY and AUD. GBP outperformed, rising 10 pips against the USD. The CHF initially fell back after slightly softer than expected August CPI data, which showed a 0.1% decline m/m, but in the end just kept pace with the EUR. EUR/SEK rose a couple of figures to 11.01 even though the Swedish CPI data showed the targeted CPIF measure rise more than expected to 3.3% y/y.
Other data included Eurozone retail sales, which was slightly lower than expected at -0.5% m/m, and UK construction PMI, which rose slightly more than expected to 45.5.