North American Summary and Highlights 17 Oct

North American session

Comments from Trump that 100% tariffs were not sustainable early on eased trade worries and while equities were choppy USD/JPY was lifted to 150.50 from 149.85 and AUD/USD to .65 from .6470. USD/CAD also moved lower, if later on the session as equities gained strength, to 1.4015 after rising to 1.4050. 

EUR/USD saw modest losses to 1.1670 from near 1.17 but a dip in GBP/USD below 1.34 was not sustained. EUR/GBP slipped to .8685 from .87. EUR/CHF was stable near .9250.  

European morning session 

EUR/USD fell back 20 pips through the European morning to trade below 1.17, and the riskier currencies were generally slightly softer against the USD, while USD/JPY and USD/CHF were net little changed after dropping in early trading. Equity futures net slightly extended the declines seen overnight, but recovered back to close to opening levels after an initial dip.  

There was little news of note with just final September Eurozone CPI on the data front, which showed an unchanged headline rate of 2.2% but a slightly upwards revision in the core y/y rate to 2.4%, with the m/m rate unchanged at 0.1%. The movements in markets were responses to the overnight news on US bank problems rather than any European developments.