North American Summary and Highlights 9 October
Overview - On another quiet day the USD saw support from Fed’s Logan but FOMC minutes had little impact.
North American session
Early trade in the absence of significant data saw the USD supported by comments from Fed’s Logan, who advocated a more gradual easing path, though this was seen largely on USD/JPY, which moved above 149. EUR/USD fell only marginally below 1.0950 while USD/CAD rose to near 1.37.
FOMC minutes from September 18 generated little response from the markets. A substantial majority favored the 50bps easing that was delivered though some would have preferred a 25bps move and a few others indicated they could support such a decision. USD/JPY stabilized near 149.30 and EUR/USD stabilized near 1.0940. USD/CAD extended gains above 1.37. GBP and AUD were quiet..
European morning session
A very quiet European morning saw marginal gains for USD/JPY which rose 10 pips to 148.65, and small losses for EUR/CHF, which lost 15 pips to 0.9395. Scandis were also slightly softer but in general the markets were very quiet. EUR/USD was steady near 1.0965. Yields were generally slightly lower across the board while equities were marginally firmer.
German trade data showed a larger than expected surplus of EUR22.5bn in August, due both to stronger than expected exports and weaker than expected imports, but there was no other data of note.