North American Summary and Highlights 7 August
Overview - Early equity gains faded, as did strength in the riskier currencies, but EUR/USD and USD/JPY were fairly stable.
North American session
In a session with little news, a positive start for equities was erased and this saw the riskier currencies slip back from early gains. AUD/USD slipped to .6515 from a high of .6575 and GBP/USD fell back below 1.27. CAD held up better despite mostly dovish BoC minutes, though did correct to 1.3750 from lows near 1.3720. USD/JPY and EUR/USD were fairly stable near 146.90 and 1.0920 respectively. While EUR/GBP largely eared earlier losses EUR/CHF found support at .94, after slipping from a .9470 high.
European morning session
The risk recovery extended through the European morning, with USD/JPY up around 60 pips to 147.60, and EUR/CHF also up 60 pips to 0.9420. There was substantial strength in the scandis, with both EUR/NOK and EUR/SEK dropping around 1%. AUD/USD gained around 30 pips to 0.6565, while EUR/USD and GBP/USD were little changed.
There was minimal news, with somewhat stronger than expected German and Norwegian industrial production and a slightly smaller than expected French trade deficit, but nothing market moving.