North American Summary and Highlights 15 Oct
Overview - USD/JPY found a base after sliding in Asia, but the USD was mixed and slightly weaker overall.
North American session
The USD softened in early North America, USD/JPY slipping back to around 151.25 and EUR/USD meeting resistance near 1.1650. GBP/USD bounced from around 1.3450 to briefly touch 1.34. Riskier currencies took a hit when equities gave up early gains, though equities did not remain negative for long and a dip in AUD/USD below .65 was corrected. USD/CAD bounced to 1.0450 from 1.0435.
Equities had their eyes on US-China trade tensions, initially taking comfort as Treasury Secretary Bessent suggested US tariffs could be delayed if Chinese controls on rare earth exports also were, but later took a hit as he called for the World Bank to end support for China. Data saw a stronger October Empire State manufacturing survey of 10.7 from -8.7, with price indices also rising. The Fed’s Beige Book saw activity and employment remaining near flat but with some increase in price pressures. Fed’s Miran stated that US-China trade tensions had increased downside economic risk.
European morning session
Focus was on USD/JPY. Which after bottoming at 150.90 retraced most of its Asian losses, reaching 151.70 in early North American trade. Elsewhere movements were modest, though EUR/USD saw modest losses, before finding support near 1.06.