North American Summary and Highlights 30 Sep
Overview - The USD was generally slightly softer, led by USD/JPY in the European morning.
North American session
The USD saw some early gains but ended slightly weaker after a session in which trading lacked any sustained direction, with no signs that a threatened imminent government shutdown would be avoided. USD/JPY remained slightly below 148 and EUR/USD close to 1.1740. USD/CAD found support near 1.39.
US data saw a modest 19k rise in August job openings but September consumer confidence fell to 94.2 from 97.8 with respondents less positive about the labor market. Fed’s Jefferson and Collins expressed fairly balanced views, seeing moderate risks on both sides of the mandate, though Goolsbee cautioned against front loading rate cuts.
European morning session
The USD was generally weaker through the European morning, with the JPY once again he best performer. USD/JPY fell 35 pips to 147.95, while EUR/USD gained 20 pips to 1.1750. Other European currencies fell back against the EUR, and were mostly little changed against the USD, as was the CAD, while the AUD was only marginally firmer.
Data was generally as expected, with UK Q2 GDP unrevised, and mixed September HICP data from the Eurozone, with the French data a little on the soft side, The Italian data broadly in line, but the German state data stronger than expected. There was little change in European yields, but US yields continued to edge a little lower, likely reflecting concerns about a potential US government shutdown tomorrow.