North American Summary and Highlights 25 Aug

European and North American sessions

European trade was subdued with the UK on holiday, with EUR/USD stable near 1.17 and USD/sustaining its Asian move above 147. August’s German IFO Business Climate index was slightly stronger at 89.0 from 88.6. In North America US July new home sales were stronger than expected at 652k, down 0.6% from June which was revised up to 656k from 627k.  

In France PM Bayrou said he would call a confidence vote on September 8 over the budget, lifting French yields and weighing on the EUR. Comments from opposition parties suggested the vote was likely to see Bayrou defeated. EUR/USD slipped to near 1.16, EUR/JPY fell to 171.60 from 172.50 and EUR/GBP fell to .8630 from .8665. Late in the session the USD made broader based gains, USD/JPY rising to 147.85 and GBP/USD falling to 1.3450 from above 1.35.