North American Summary and Highlights 27 August
Overview - The USD saw little change overall though AUD, CAD and CHF managed modest gains, as did oil.
North American session
The USD opened slightly firmer and while there was no immediate reaction to the US data a dip came soon after, but was largely corrected leaving the USD little changed. EUR/USD and USD/JPY were little changed though AUD and CAD both saw modest gains versus the USD. EUR/CHF fell to .937 from .939. Oil was firmer, supported by Trump stating there were no negotiations taking place with Iran.
July’s US advance goods trade deficit of $118.8bn versus $101.4bn was significantly wider than expected but initial claims at 203k from 207k were lower than expected. Fed talk was mixed, Hammack and Schmid hawkish but a balanced tone from Goolsbee and Collins possibly more significant. Both Collins and Hammack stated recent core PCE price data had not altered their view.
European session
Risk supported by Nvidia’s results after Wednesday’s close, Nasdaq up 1.1%, semiconductors up around 3%. Earnings beat at $108 vs mkt $104, with revenue seen up 70% FY28, while still highlighting memory supply shortages as constraints.
Otherwise, quiet and broadly flat across FX this morning. Even with the slight bolster to risk, dollar still cushioned out of yesterday’s data. Next big focus is Warsh’s speech on Friday of course and that might keep the market sidelined.