Europe Summary and Highlights 4 October
USD/JPY edged up through the European morning session, gaining around 30 pips to 146.40 and correcting some of the declines seen in Asia overnight.
European morning session
USD/JPY edged up through the European morning session, gaining around 30 pips to 146.40 and correcting some of the declines seen in Asia overnight. USD/CHF was also higher, with EUR/CHF up 20 pips to 0.94, but EUR/USD was not much changed near 1.1025. GBP was the best performer, with GBP/USD gaining 30 pips to 1.3160, helped by a strong rise in the construction PMI for September. AUD/USD edged a little lower.
There was little news of note awaiting the US employment numbers.
North American session
There was not much FX movement in North America. A stronger ISM services index of 54.9 from 51.5 gave the USD a lift, but a bounce in USD/JPY above 147 was quickly reversed, and a more gradual dip in EUR/USD to 1.101 was largely reversed, again gradually. A modest rise in initial claims to 225k from 219k earlier had little impact. EUR/GBP and EUR/CHF stabilised after advancing in Europe.
Oil spiked higher after Biden suggested an Israeli strike on Iranian oil facilities was being discussed, which did see a modest dip in USD/CAD, though USD/CAD ended marginally higher near 1.3550.