North American Summary and Highlights 1 Dec
Overview - The USD slipped in Europe and early North America, but recovered to end little changed.
North American session
Despite a weaker than expected ISM November manufacturing index of 48.2 from 48.7, the USD largely erased losses which extended early in North America to end little changed. UST yields were higher and equities lower. USD/JPY recovered to 155.50 after falling to a low of 154.67, while EUR/USD slipped back to near 1.16 after reaching 1.1650. EUR/GBP was fairly stable but EUR/CHF firmer at .9340. USD/CAD advanced to 1.40 from a 1.3955 low, while AUD/USD was unable to sustain a move above .6550.
European morning session
The USD was softer through the European morning, with EUR/USD gaining 30 pips to 1.1625 and USD/JPY extending overnight losses by 35 pips to 155.25. However, while the SEK held its own against the EUR, most other currencies were weaker against both the EUR and the JPY, and not much changed against the USD, with just marginal gains for the AUD and CHF.
There wasn’t much news of note. European final manufacturing PMIs were not significantly revised, with the UK PMI unchanged from the preliminary and the Eurozone just 0.1 lower. UK money and credit data was mixed, with weaker than expected M4 growth and net lending to individuals but slightly higher than expected mortgage approvals.