North American Summary and Highlights 26 Aug

North American session

The USD was generally weaker as worries over Fed independence persisted, though ended off its lows. Fed Governor Cook announced a legal challenge to her dismissal by Trump and the Fed stated it would abide by the any court ruling. EUR/USD was little changed at 1.1640 after peaking at 1.1665 while EUR/CHF slipped to .9355 from .9375. USD/JPY was slightly weaker at 147.40 after briefly slipping below 147.20. GBP/USD held up near 1.3480 while AUD/USD tested .65.  

July US durable goods orders were less weak than expected at -2.8% with ex transport unexpectedly firm with a 1.1% increase, giving a brief and modest lift to the USD. August consumer confidence at 97.4 was slightly above consensus but down from 98.7 in July, which was revised up from 97.2. Consumers were less positive on employment and expectations for inflation increased.  

European morning session 

The USD was mixed through the European morning, losing ground to the JPY, GBP AUD and CAD, but gaining against the scandis, with EUR/USD and USD/CHF little changed. USD/JPY lost 20 pips to 147.55 and GBP/USD rose 20 pips to 1.3480, while AUD and CAD made marginal gains. EUR/USD was little changed near 1.1640 after an early dip to 1.1610, but EUR/SEK gained 3 figures to 11.17 and EUR/NOK 5 figures to 11.83. 

Swedish yields were a little lower after the Riksbank Monetary policy minutes confirmed that further easing was likely this year. The softer EUR may have reflected weaker French consumer confidence and political uncertainty as French Prime Minister Francois Bayrou risks being ousted after he called for a vote of confidence next month over his plans to cut France's public deficit. GBP gains were helped by higher UK yields, as the market pared back UK rate cut expectations.