North American Summary and Highlights 9 Dec
Overview - The USD was slightly stronger, supported by US job openings data.
North American session
The US released the JOLTS report on labor turnover for September and October. The data was stronger than expected, with job openings up by a strong 431k in September and a marginal 12k in October. USD/JPY rose to a high of 156.95 from 156.40 with only marginal correction later, while EUR/USD slipped to a low of 1.1615 from 1.1640 before correcting to 1.1630.
BoE testimony raised expectations for a December easing, and EUR/GBP rose above .8740. EUR/CHF in contrast was weaker near .9370 from .9390. EUR/NOK erased earlier losses but losses in EUR/SEK were sustained. AUD/USD and USD/CAD were little changed.
European morning session
There was little net change in most FX rates in the European morning. Initially the USD fell back against European currencies and extended overnight gains against the JPY, but these moves were reversed by the end of the morning. Comments from BOJ governor Ueda triggered some of the JPY volatility. He noted that the rise in long term JPY rates was “somewhat rapid” and indicated the BoJ may intervene to prevent more gains, which helped early JPY weakness. However, he also supported market expectations of a December hike by noting a tightening labour market and the low level of real rates, and helped the JPY recover by mentioning the significance of FX movements.
The scandis were the best performers on the morning, with EUR/SEK down 4 figures and EUR/NOK down 3 figures, although without an obvious trigger.