North American Summary and Highlights 14 August
Overview - GBP fell on a weaker than expected UK CPI while the USD was little changed on a near consensus US CPI.
North American session
Focus was on US July CPI data which came in on consensus with gains of 0.2% overall and ex food and energy, though both were a little softer before rounding. A knee-jerk USD dip on the data was quickly reversed and more, and while the downside was attempted once again, the USD ended marginally firmer.
EUR/USD was little changed near 1.01 while USD/JPY saw only a modest rise to 147.25 from 147. GBP/USD, after fully erasing its post-CPI dip to touch back above 1.2860 ended near its post-CPI low of 1.2820. EUR/GBP maintained European gains but European losses for EUR/SEK were erased. EUR/CHF was slightly firmer at .9525. AUD/USD underperformed, touching below .66 while AUD/CAD lost 50 ticks to .9050.
European morning session
The USD was weaker against the riskier currencies through the European morning. EUR/USD broke above 1.10 and hit a high of 1.1028 after opening at 1.0990. The SEK was the strongest currency on the session, with EUR/SEK dropping 5 figures to 11.47, helped by stronger than expected Swedish July CPI data, which showed the targeted CPIF measure rising to 1.7% y/y.
GBP underperformed, with EUR/GBP gaining 30 pips to 0.8580. The initial rise was due to weaker than expected UK July CPI data for July, which showed a smaller than expected rise in headline inflation to 2.2% y/y from 2.0% in June. GBP/USD was slightly lower on the session as a result. AUD and CAD were both around 0.1% firmer, while USD/JPY was unchanged and USD/CHF kept pace with EUR/USD.