North American Summary and Highlights 4 Dec
Overview - The USD moved slightly higher after initial claims fell to 3-year low.
North American session
US initial claims surprisingly slipped to a 3-year low of 191k from 218k, though possibly influenced by Thanksgiving holiday seasonal adjustments. The initial reaction to the data was brief, but as the session progressed USD gains resumed, EUR/USD falling below 1.1650 from 1.1670 and USD/JPY rising above 155 from 154.85. GBP/USD reached a high of 1.3385 before slipping to 1.3335, leaving EUR/GBP only marginally lower at .8735. EUR/CHF advanced to .9360 from .9340. AUD and CAD also saw early gains corrected as the USD picked up, ending with only marginal gains versus the USD.
European morning session
The JPY was generally stronger through the European morning, with USD/JPY down 50 pips to 154.75, and EUR/JPY down 50 pips to 180.55. The USD was slightly softer against most European currencies, but little changed against the AUD and CAD. The scandis were a little weaker against the EUR and little changed against the USD after Swedish preliminary November CPI came out weaker than expected at 2.3% y/y on the targeted CPIF measure.
Other data included a very weak UK construction PMI number for November, the weakest on record excluding the pandemic, and Eurozone retail sales, which was flat on the month as expected in October.