North American Summary and Highlights 27 Oct
Overview - The USD saw some slippage in Europe before recovering in the North American morning, before a late move lower.
North American session
Equities were buoyed by hopes for a trade deal between the US and China and this saw USD/JPY moving above 153 in the morning after bottoming near 152.60, but a late dip saw a correction to 152.90. EUR/USD was little changed around 1.1635 for most of the session but the late USD dip saw 1.1650 briefly touched. EUR/GBP saw modest gains to .8735. AUD/USD sustained European gains around .6555 but US-Canada trade tensions saw USD/CAD advance to around 1.40 from 1.3975.
European morning session
The USD was generally softer through the European morning, with EUR/USD gaining 15 pips to 1.1640, and USD/JPY down 25 pips to 152.75. AUD was marginally the best performer, with AUD/USD up 15 pips to 0.6555. GBP kept pace with the EUR but CHF, scandis and CAD were all little changed against the USD.
The session saw the German IFO survey, which was slightly on the strong side of the published consensus, although the real market expectation might have been adjusted higher after last week’s stronger than expected German PMI. There was little initial reaction to the IFO, or the Eurozone M3 data released at the same time, which was broadly in line with consensus but showed some weakness in lending to the non-bank private sector.