Asia Summary and Highlights 11 October

Asia Session

Slow start for the FX market on Friday's Asia session after hotter than expected CPI in the overnight New York session. The U.S. Treasury outperforms JGB yields so far in the session . USD/JPY is up 0.11% to 148.73.

Regional sentiment is heavy with Hong Kong market off for holiday, while U.S. equity indexes are more positive on balance. AUD/USD is up 0.07% at 0.6745, NZD/USD is up 0.17% to 0.6103 while USD/CAD is up 0.08%. Else, EUR/USD is unchanged and GBP/USD down 0.08%.

North American session

US data showed a sharp rise in initial claims to 258k from 225k, and a slightly stronger than expected September CPI at 0.2% overall and 0.3% ex food and energy. The initial claims rise was in part attributed to Hurricane Helene, but a further boost is expected from Hurricane Milton. The CPI upside surprise looked a little broader based than a similar one in August, which was led by housing. Still, the initial claims data initially outweighed the CPI and the USD moved a little lower. Most of the day’s Fed speakers had little impact but a remark by Bostic that he was open to a rates pause in November gave the USD a boost, which while subsequently largely reversed left the USD little changed on the day.

EUR/USD was little changed near 1.0925 but USD/JPY slipped to 148.65 from near 149. CHF also was slightly stronger with EUR/CHF seeing lows below .9350 and USD/CHF falling 20 pips to 0.8570. CAD was relatively weak with USD/CAD above 1.3750 and AUD/CAD above .9250.