North American Summary and Highlights 15 Aug
Overview - The USD was generally weaker, but stabilized in North America after falling in Europe.
North American session
US July retail sales were in line with expectations with a 0.5% rise but with upward back revisions, and August’s Empire State Manufacturing Index was stronger than expected at 11.9 from 5.5. Unchanged July industrial production was in line with expectations but August’s preliminary Michigan CSI was weaker than expected at 58.6 from 61.7, with higher inflation expectations.
The USD did not see much reaction to the data, maintaining a generally soft tone, before a modest correction in the afternoon, as UST yields picked up. EUR/USD was particularly firm rising to 1.17 while GBP/USD and AUD/USD were little changed after correcting from their highs. USD/CAD moved back above 1.3815 and USD/JPY moved back above 147. EUR/JPY advanced to 172.25 from 171.80.
European morning session
The USD moved lower through the European morning. EUR/USD rose 25 pips to 1.1685, and USD/JPY fell 25 pips to 146.85. GBP, CAD and AUD all gained only very slightly, losing ground to the EUR and JPY on the crosses. The NOK was the strongest currency on the morning, with EUR/NOK slipping 2 figures lower to 11.89.
Swiss GDP was the only data of note, showing a 0.1% Q2 rise, but produced no market reaction. There wasn’t any other news of note, with the market awaiting the Trump-Putin summit as well as the US data later.