North American Summary and Highlights 8 November

North American session

The USD was stronger in North American trade, assisted by Michigan CSI data and Trump asking protectionist Robert Lighthizer to run trade policy. USD/JPY, after finding a base near 153.25 recovered to 152.75 but remained down on the day. EUR/USD fell to near 1.07 from near 1.08. The USD also advanced versus the GBP and CHF but EUR/GBP and EUR/CHF were weaker. AUD/USD was particularly weak felling to .6570. USD/CAD rose above 1.39 but CAD was relatively resilient after a respectable Canadian employment report.

November’s Michigan CSI, surveyed before the election, rose to 73.0 from 70.5 with the rise fully on future expectations. October Canadian employment rose by a moderate 14.5k but full time and private sector work outperformed, unemployment as unchanged at 6.5% and wages were stronger. 

European morning session

USD/JPY dropped around half a figure in the European morning session as the equity rise seen after Trump’s election victory went into reverse. Equities were generally lower, led by a sharp drop in Chinese equities at 08:00 GMT. Other than against the JPY the USD was generally unchanged to slightly firmer. AUD/USD dropped 15 pips to 0.6635, but EUR/USD was only very marginally lower. Yields were generally lower and US yields are now little changed from pre-election levels. 

There was little data of any note, with just a slightly larger than expected French trade deficit for September and mixed Swedish industrial data, with weaker orders and stronger production.