North American Summary and Highlights 10 Nov
Overview - Risk appetite was lifted by hopes of an end to the US governments shutdown but FX movements were modest. The EUR lost ground versus GBP, CHF and NOK.
North American session
Equities were lifted by hopes of a near term end to the government shutdown but USD/JPY was fairly stable near 154 while AUD/USD and USD/CAD also saw little movement. EUR/USD saw some movement in both directions but ended little changed near 1.1560. However EUR/CHF slipped to near .93 from .9320 while EUR/GBP slipped to .8770 from .8790. Fed talk saw Miran call for a 50bps ease in December but Musalem saw little room to ease further. Daly was more balanced, seeing a need to keep an open mind about future rate cuts, though with a slightly dovish tone in her views on the economy.
European morning session
EUR/NOK dropped 4 figures to trade below 11.70 in the European morning, after stronger than expected October CPI data. Headline came in at 3.3% y/y and core rose to 3.4% y/y against a market consensus of 3.0% for the core and 3.1% for the headline. Otherwise, the markets were quiet, with a modest risk positive tone. USD/JPY slightly extended overnight gains to reach a high of 154.23 before dropping back, while EUR/USD reached a high of 1.1583 but finished the session just marginally higher at 1.1560. AUD, CAD and GBP were all marginally firmer, with equity prices generally higher helped by rising expectations of an end to the US government shutdown, despite a modest fall in the Sentix investor confidence index for November.