North American Summary and Highlights 17 September

North American session

The USD was supported by stronger than expected data, first a 0.1% rise in retail sales which did not see an expected dip in autos, with sales ex autos also up by 0.1%, and secondly a 0.8% rise in industrial production that was led by autos, though largely offset by negative back revisions. USD/JPY extended gains from 140.70 to see a late break above 142. EUR/USD saw only a modest dip to 1.1115 from 1.1140. EUR/GBP advanced to near .8450 from .8425 as GBP/USD fell back to 1.3160 from 1.3215 while EUR/CHF also saw marginal gains.

Canadian CPI was weaker than expected falling to 2.0% y/y from 2.5%. USD/CAD bounced above 1.36 on the mix of US and Canadian data but could not sustain the move, ending little changed, as did AUD/USD. 

European morning session

Not much FX movement seen in a quiet European morning session. EUR/USD moved around 10 pips firmer to 1.1135, despite a weaker than expected German ZEW survey. This showed the current conditions index hit its lowest since the pandemic while the economic sentiment index fell sharply to its lowest level this year, but there was little FX reaction. 

Otherwise, AUD/USD also gained a little ground to 0.6765, and GBP/USD gained 10 pips to 1.3220. USD/JPY was little changed at 140.60.