North American Summary and Highlights 11 November
Overview - The USD advanced in Europe but was little changed in North America on Veterans’ Day.
North American session
With the partial holiday for Veterans’ Day seeing bond markets closed there was little movement in North America. EUR/USD was stable near 1.065 and USD/JPY stable near 153.75. The EUR made marginal corrections from European losses versus GBP and CHF. AUD/USD saw modest loses to .6570, underperforming USD/CAD which found sellers at 1.3950.
European morning session
The USD made general gains through the European morning. The EUR, CHF and scandis saw the largest declines, falling by around 0.3%, while the JPY lost 0.2%. GBP, AUD and CAD were only marginally lower.There wasn’t a great deal of relevant news in the European morning. Data was limited to Norwegian October CPI which was only very marginally weaker than expected at 0.2% m/m, with the y/y rates in line with consensus. The USD’s strength looks to be related to expectations of US tariffs being imposed along with domestic tax cuts, which is seen as negative for China and the Eurozone in particular.