North American Summary and Highlights 16 Dec
Overview - The USD was marginally weaker on the day but the slippage came mostly ahead of the US employment data, which generated little sustained response.
North American session
US employment data was mixed, with unemployment up to 4.6% in November from 4.4% in September, and a 64k rise in November payrolls not fully erasing a 105k October loss. However, private payrolls in both months increased, November by 69k and October by 52k. Later December S and P PMIS were weaker, manufacturing at 51.8 from 52.2 and services at 52.9 from 54.1.
UST yields and equities were slightly lower but the USD saw little change versus most currencies. EUR/USD returned to near 1.1760 after briefly moving above 1.18 while USD/JPY was capped at 155. USD/CAD was slightly weaker near 1.3750 though AUD/USD was little changed near .6640 after a brief bounce to .6660.
European morning session
GBP made some gains through the European morning, benefiting from a slightly less weak than expected labour market report for the 3 months to October. However, the more up to date November HMRC data suggested more significant weakness is in the pipeline. GBP subsequently benefited from a rise in the UK December composite PMI, while the EUR lost ground as the Eurozone PMI dipped. EUR/GBP was down 20 pips on the morning to 0.8770, with GBP/USD gaining 40 pips to 1.3410.
EUR/USD was net slightly firmer on the morning despite a dip following the weaker than expected German PMI, and the USD also edged a touch lower against the JPY. The USD was not much changed against the commodity currencies, while the EUR was modestly stronger against the scandis.