North American Summary and Highlights 23 Oct
Overview -
The USD was mostly little changed but slipped versus EUR and CHF in North America.
North American session
EUR/USD advanced from a low of 1.1585 to 1.1615 but GBP/USD was marginally weaker, seeing EUR/GBP advancing to .8720 from .8685. EUR/CHF however slipped to .9240 from .9250 as USD/CHF fell to .7950 from .7985. USD/JPY was little changed near 152.50. AUD/USD sustained a move above .65 while USD/CAD found sellers above 1.40.
A 1.0% rise in August Canadian retail sales and a 1.5% rise in September US existing home sales to 4.06m were both in line with expectations. Equities and UST yields were firmer supported by the announcement that Trump would meet China's Xi next Thursday. Oil sustained earlier gains.
European morning session
AUD/USD gained 20 pips to 0.6510, USD/JPY rose 20 pips to 152.60, EUR/NOK fell 4 figures to 111.58 and EUR/GBP lost 10 pips to 0.8685 in the European morning. EUR/USD was little changed. The FX moves indicated a generally risk positive tone rather than any particular news, but were also helped by the oil price extending overnight gains on the US sanctions on Russia.
The French INSEE survey showed a strong rise in the manufacturing outlook but little change in the general business outlook, and had a small but temporary positive impact on the EUR. Minutes from the SNB September meeting provided no great surprises, but highlighted the negative impact of US tariffs on the Swiss economy, while noting the upside risk to the Swiss franc from geopolitical factors.