North American Summary and Highlights 3 Sep
Overview - The USD was generally slightly softer, particularly after weaker US job openings data.
North American session
July US job openings fell by 176k to the lowest level since September 2024 and the USD slipped in response. USD/JPY saw lows below 148 from 148.75, but elsewhere the response was modest, EUR/USD edging above 1.1660 from below 1.1650 and GBP/USD near 1.3440 from 1.3420. AUD/USD and USD/CAD saw very limited reactions.
Fed’s Waller reiterated his support for easing, Musalem was more cautious while Kashkari saw scope for rates to come down gently. The Fed’s Beige Book saw little change in activity or employment, but some tariff-induced pressure on prices.
European morning session
The USD was generally slightly softer through a quiet European morning session. EUR/USD gained 30 pips to 1.1660, AUD/USD was up 15 pips to 0.6530, but USD/JPY only fell back 10 pips to 148.50. EUR/GBP edged a little lower, dipping back below 0.87, helped by an upward revision in the UK August services PMI which took the UK composite PMI to its highest for a year, while the Eurozone PMI was revised slightly lower.
News was thin on the ground. Other than the final PMIs, Eurozone PPI was the only data, coming in a little stronger than expected at 0.4% m/m.