North American Summary and Highlights 11 Dec
Overview - US data was mixed, but the USD was softer, particularly versus EUR and CHF.
North American session
US data was mixed, with initial claims rebounding above trend to 236k to offset a below trend 192k in the preceding week that included the Thanksgiving holiday, but a narrower than expected $52.8bn September trade deficit, from $59.3bn in August. The trade surprise was largely due to a surge in exports of nonmonetary gold.
The USD was generally softer, with EUR/USD rising to 1.1745 from 1.1715. The EUR was firm generally, with EUR/GBP at .8770 from .8750 and EUR/JPY rising to 182.70 after briefly dipping below 182. EUR/CHF was however stable near .9330, sustaining a European dip. USD/JPY slipped to 155 before reversing most of its losses in a recovery to 155.55, with UST yields also moving off their lows. USD/CAD saw losses to 1.3770 from 1.38. AUD/USD sustained European gains, but was fairly stable through the North American session near .6670.
European morning session
The USD was generally lower through the European morning session. EUR/USD gained 20 pips to 1.1720 and USD/JPY fell 15 pips to 155.85. GBP lagged behind slightly with GBP/USD only up marginally, while AUD was the best performer, reversing some of the losses on the crosses seen overnight.
The CHF was the best performer, with EUR/CHF dropping 15 pips to 0.9330 after the SNB meeting, although the meeting provided few surprises, with rates left unchanged and the usual indication that the SNB is prepared to act in the FX market if necessary.