North American Summary and Highlights 13 October
Overview - The USD slightly softer overall, with Fed’s Williams dovish, despite a firm tone to oil.
North American session
USD moves were modest though a noticeable afternoon dip was seen as Fed’s Williams stated further tightening this year was not needed. Oil was however firmer, supported by conflict between Saudi Arabia and Yemen’s Houthis. US September existing home sales saw a 1.5% increase, but the rise was largely offset by August being revised to -3.2% from -2.0%.
USD/JPY advanced to 158.40 from 158.20 but EUR/USD crept higher to reach 1.12. EUR/GBP was stable, EUR/CHF firmer and EUR/SEK softer. AUD/USD gains stabilized around 0.6980. USD/CAD however slipped to near 1.42 from 1.4250, seeing earlier AUD/CAD gains erased.
European session
Dollar off a touch this morning, after the firmer start to the week on Monday. Asia-led pressure in tech still a background theme to recent sessions, semiconductors, Kospi and wider Asia equities off 2-5%, and Nasdaq around -0.4%.
Weaker tech-sentiment sessions tending to lean US yields and USD lower, USD/JPY especially, though it would need a much more distinct shift to be a dominant market driver. USD/JPY anyway still finding better supply surface into 159 and back to 158~.
France a fraction tighter, but only within the range of the last few sessions. EUR/USD up a touch but just in line with the wider dollar trade. German final HICP 3.3% in line with prelim. US NFIB business optimism 97.9 from 98.7.