North American Summary and Highlights 3 November
Overview - The USD was slightly firmer on a mostly consolidative day.
North American session
There was not much movement in the USD though it did get a lift from a rise in US job openings. USD/JPY extended gains to near 158.75 but EUR/USD was stable near 1.1190. EUR/CHF was slightly firmer. The USD made marginal gains versus AUD and CAD, USD/CAD reaching 1.40.
European session
Consolidative session, with some slippage in the aussie out of the ‘dovish-hike’ RBA meeting being the main mover. AUD/NZD off around ½ %, extending the pullback from the spike high seen out of the RBNZ and CPI data. NOK also sees some moderation of Monday's big move.
The RBA vote was split 6-3, with some already favouring a hold, while the statement dropped any references to further increases instead saying it would 'do what it considers necessary to bring inflation sustainably back to target'. Bullard also added it was time to pause and assess, while it was unclear what the next rate move would be. The ‘skew’ to inflation risks is to the upside but that is also less assertive. Comments tending to reinforce the money market’s adjustment down to a flat profile from here.
Fairly quiet elsewhere. Oil saw a small bounce from support on some reporting on defensive strikes on ground-to-air missiles on Qeshm Island, but this seen low key and within the recent contained ‘management’ actions, leaving net position still somewhat more balanced on scenarios ahead. NOK does manage a decent bounce though from recent pullback (USD/NOK tested and lifted off the 1.04 area of much of Oct).