North American Summary and Highlights 13 September
Overview - The USD was pressured by reports the FOMC was considering a 50bps easing at the forthcoming meeting, though stronger Michigan CSI data helped the USD to stabilize.
North American session
The USD started the session under some pressure, EUR/USD touching 1.11 and USD/JPY slipping to 140.30, but a stronger Michigan CSI of 69.0 from 67.9 with the 5-10 year inflation view at 3.1% from 3.0% helped the USD to stabilize. USD/JPY recovered to 140.90 while EUR/USD corrected back to 1.1080. The USD was mostly little changed, but USD/CAD did advance as high as 1.36 from 1.3575.
European morning session
The USD extended overnight losses in the European morning after staging a modest initial rally. EUR/USD opened around 1.1085 and dropped to 1.1075 but rallied to test 1.11 buy the end of the morning. USD/JPY similarly initially rose from 141.00 to 141.40 but dropped sharply from there and was trading at 140.40 by the end of the session. Other currencies broadly moved in line with the EUR but the scandis outperformed with EUR/NOK and EUR/SEK dropping 2 and 3 figures respectively, while AUD and CAD lagged slightly.
There wasn’t a great deal of news. Data wise French August CPI was revised down slightly to 0.5% m/m from 0.6%, although on an HICP basis the data as unrevised at 0.6%. Eurozone industrial production was a little less weak than expected at -0.3% m/m in July.