North American Summary and Highlights 24 September

North American session

The USD took a hit from softer US consumer confidence data, September seeing a decline to 98.7 from 105.6, with eyes in particular on weaker labor market perceptions. USD/JPY fell to 143.25 from near 144 while EUR/USD rose to 1.1175 from 1.1140.  EUR/JPY, having peaked near 161, fell back to near 160.  

The commodity currencies were supported by gains in oil as well as the US data, USD/CAD falling to 1.3440 from 1.35 and AUD/USD advancing to .6890 from .6850. BoC’s Macklem said further rate cuts were likely but timing and pace was dependent on data

European morning session

EUR/JPY gained ground through the European morning, with both EUR/USD and USD/JPY moving higher, each gaining around 20 pips although the gains were larger earlier in the session. EUR/JPY was consequently up around 60 pips to 160.80 on the session. EUR/CHF was also higher, rising 30 pips to 0.9450. 

The main news during the session was the German IFO survey, which was weaker than the surveyed consensus but broadly in line with market expectations after the weaker than expected PMI data on Monday. But sentiment was also influenced by developments in Asia, with the Chinese policy easing and the dovish tone in the speech by Ueda in late Asia helping risk sentiment. European equities were up 1% or more on the session.