North American Summary and Highlights 8 Dec
Overview - JPY weakness on earthquake worries was the main feature but the USD also made gains elsewhere.
North American session
JPY weakness, in part due to an earthquake in Japan and fears of consequent tsunamis, was the focus in North America. USD/JPY extended gains to near 156 from 155.50, while EUR/JPY advanced to 181.50 from 181.20. The UAD was however generally firmer as were UST yields ahead of this week’s supply and FOMC meeting, EUR/USD slipping to 1.1625 from 1.1650 before recovering to 1.1640. EUR/CHF rose to .9390 from .9370 while EUR/GBP slipped to .8735 from .8750. AUD/USD slipped to .6620 from .6640 while USD/CAD rose to 1.3850 from 1.38.
European morning session
The USD gained ground through the European morning, with the JPY the biggest loser, USD/JPY rising 30 pips to 155.50. EUR/USD dropped a more modest 15 pips to 1.1650, with other European currencies and the AUD seeing similar losses, while USD/CAD was little changed.
News was light, with German industrial production the only data of real note. This was stronger than expected, rising 1.8% m/m in October. However, the underlying trend remains near flat, as the stronger October and September data follow weakness in August. There was no significant EUR reaction to this, nor to the Sentix investor confidence index which rose slightly in December in line with consensus.