North American Summary and Highlights 3 Dec
Overview - The USD was generally softer, particularly after a weak ADP report, with GBP/USD particularly firm.
North American session
While reaction to the data was modest, the USD was generally weaker after a 32k decline in November’s ADP employment report, which was seen as raising the chances of a Fed easing next week. Other US data had less impact, an on consensus 0.1% increase in September industrial production and an unexpected modest increase in November’s ISM services index, to 52.6 from 52.4.
USD/JPY slipped from 155.40 to fund support at 155. EUR/USD saw only marginal gains to 1.1675 from 1.1665, but GBP/USD rose to 1.3350 from 1.33 as EUR/GBP slipped below .8750 from .8770. AUD/USD gains reached .66 and with USD/CAD little changed at 1.3950 AUD/CAD moved above .92.
European morning session
The USD was generally weaker through the European morning, with GBP and scandis making the biggest gains. GBP/USD rose 40 pips to 1.3285, helped by an upward revision to the UK services and composite PMI for November. The composite PMI was revised up to 51.2 from 50.5, but was still down from the 52.2 in October. Swedish services PMI was the strongest since June 2022. There was also an upward revision to the Eurozone composite PMI to 52.8 from 52.4, the highest level since April 2023, helping EUR/USD move up 20 pips to 1.1660. USD losses elsewhere were more modest, with AUD and JPY up around 0.1% and USD/CAD down 20 pips to 1.3945.
EUR/CHF moved marginally higher helped by weaker than expected Swiss CPI which fell 0.2% m/m in November and is unchanged y/y.