North American Summary and Highlights 12 Nov
Overview - The USD was firmer in Europe led by USD/JPY, but lost momentum in North America.
North American session
Awaiting a House vote to reopen the government, there was little news other than some hawkish comments from Fed’s Bostic who argued against further easing. USD/JPY gains briefly reached 155 before a correction to 154.75. EUR/USD gains fell just short of 1.16 and a correction to 1.1585 followed. EUR/JPY remained firm above 179. EUR/GBP peaked just below .884 before correcting to near .8825. EUR/CHF was weaker near .9240. USD/CAD fell to 1.40 from 1.4020. Bank of Canada minutes from October 29 reinforced a message that further easing should not be expected. AUD/USD saw only marginal gains, peaking near .6550.
European morning session
USD/JPY continued to advance through the European morning, making another new post February high at 154.91, with EUR/JPY making another new all-time high at 179.30. The USD was slightly firmer across the board, with EUR/USD down 15 pips to 1.1570 with similar gains in most other pairs, but the CHF was notably stronger, with EUR/CHF falling 20 pips to 0.9250, reflecting hopes of an imminent trade deal with the US after Trump said on Monday that he was considering reducing tariffs on Swiss goods.
GBP saw an initial decline, helped by talk of a leadership challenge to PM Starmer. EUR/GBP reached a high of 0.8826 before falling back, with UK gilt yields generally higher. SEK also performed well, with EUR/SEK down 2 figures to 10.93 helped by a lower Swedish unemployment rate for October at 6.8%.