North American Summary and Highlights 22 Oct
Overview - GBP slipped after a softer than expected UK CPI but the USD was not much changed, slipping in North America after gains in Europe.
North American session
The USD was generally softer in North America. GBP/USD came close to reversing European losses, moving above 1.3350 after bottoming near 1.33, while EUR/USD moved above 1.16 from a low of 1.1577. EUR/GBP corrected from European highs, edging back below .87.
USD/CAD fell back below 1.40 after rising to 1.4030 with oil firmer but AUD/USD was little changed, unable to sustain a move above .65. USD/JPY was also little changed, near 151.90, after a brief dip to 151.50.
European morning session
GBP was the biggest mover on the morning, with EUR/GBP rising 30 pips to 0.8710 on the back of a weaker than expected UK September CPI number, which showed the headline inflation rate unchanged at 3.8% and the core dropping to 3.5% from 3.6%. UK 2 year yields dropped 10bps on the news.
Otherwise the USD was generally slightly firmer against the riskier currencies, while USD/JPY was little changed. EUR/USD was down around 15 pips to 1.1590, and AUD/SD lost 10 pips to 0.6495.