North American Summary and Highlights 20 Jan
Overview - The USD was generally softer though stabilized in North America while equities remained under pressure.
North American session
There was little FX movement in the North American session though the USD did see a modest recovery in the afternoon, USD/JPY pushing through 158 to 158.20 while EUR/USD edged down to 1.1715. EUR/GBP sustained its European gains while EUR/CHF sustained its European losses. AUD/USD saw some early gains but could not break .6750. Equities remained under pressure, extending losses in the afternoon as Trump gave a press conference, which added little of note.
European morning session
The USD was generally weaker through the European morning, as equities fell back on concerns around Greenland. EUR/USD gained half a figure to 1.1725, while the CHF was the best performer, with EUR/CHF dropping 30 pips to 0.9260. The EUR was otherwise generally higher on the crosses, except against the SEK with EUR/SEK little changed.
EUR/JPY made strong gains in early Europe/late Asia, as the JPY suffered from concerns around the snap Japanese election called for February 8 and potentially easier fiscal policy. JPY declines came in tandem with sharp rises in JGB yields.