North American Summary and Highlights 29 Sep
Overview - The USD was generally softer with a potential US government shutdown getting closer.
North American session
The USD softened early in the session but ended off its lows, if still slightly down on the day. EUR/USD rose to a high of 1.1755 from 1.1715 before correcting to 1.1730. EUR/CHF was firmer at .9350 from .9340. USD/JPY was stable near 148.60. AUD/USD was firmer at .6580 from .6555.
A threatened US government shutdown on Wednesday weighed on the USD. August pending home sales were firmer with a 4.0% rise but September’s Dallas Fed manufacturing survey fell to -8.7 from -1.8. Fed’s Hammack was hawkish but more significantly Williams was cautiously dovish. Trump outlined a peace plan for Gaza that Israel’s Netanyahu accepted, though a response from Hamas is still awaited.
European morning session
The USD fell back against the JPY but was slightly firmer against the risker currencies in the European morning. USD/JPY dropped 30 pips to 148.60, while most of the riskier currencies were down 0.1% or so against the USD. JPY gains were helped by a general decline in US and European yields, although this also helped to produce some gains in equity markets.
News was thin on the ground. There was slightly weaker than expected preliminary Spanish September CPI data, showing a 0.1% m/m rise in HICP, while the European Commission survey was a little stronger than expected, although very little changed in September from August. UK Money and credit data showed a slightly larger than expected 0.4% rise in M4, but smaller than expected gains in mortgage lending and approvals and consumer credit.