North American Summary and Highlights 22 Jan
Overview - The USD was largely weaker while risk appetite remained firmer after Trump’s climbdown on Greenland.
European and North American sessions
With Greenland risks fading EUR/USD moved above 1.17 to touch 1.1750. GBP/USD, after dipping to near 1.34 with some talk of a possible challenge to PM Starmer from Manchester Mayor Burnham rebounded to touch 1.35, with a bounce in EUR/GBP to .8730 from .87 reversing. EUR/CHF was slightly softer near .9280. USD/JPY kept to a 158 handle, slipping back below 158.50 after early gains, but EUR/JPY saw fresh highs above 186. AUD/USD gains extended comfortably above .68 while USD/CAD fell below 1.38.
US data had a limited impact. Initial claims at 200k from 199k were lower than expected. Q3 GDP was revised marginally higher to 4.4% from 4.3% in inventories. Core PCE prices rise by 0.2% in both October and November, while personal spending saw firm gains of 0.5% in both months, outperforming personal income gains of 0.1% in October and 0.3% in November.