North American Summary and Highlights 26 Nov
Overview - GBP was stronger after the UK budget. The USD saw early gains but these were subsequently erased.
North American session
UK markets were volatile around the release of the budget which produced a fiscal tightening but with the tax increases back loaded. The package was eventually well received, with Gilt yields lower, EUR/GBP falling to .8760 after a brief bounce above .88, and GBP/USD up over a big figure from a low of 1.3125.
The USD saw a lift from stronger than expected data, initial claims falling to 216k from 222k and September durable goods orders rising by 0.5%, 0.6% ex transport. EUR/USD slipped to 1.1550 from 1.1580 but later reversed direction, in part on a very weak November Chicago PMI index of 36.3, rising to near 1.16. USD/JPY was little changed near 156.50 but USD/CAD fell to 1.4040 after reaching 1.41 while AUD/USD rose to .6520 from .6490.
European morning session
The USD was generally stronger through the European morning, reversing some of the overnight losses in Asia. EUR/USD dropped 15 pips to 1.1575, while USD/JPY gained 20 pips to 156.40. There were similar USD gains across the board with not much movement on the crosses. However, the scandis were both a little weaker, with EUR/NOK and EUR/SEK both a couple of figures higher. NOK declines may have related in part to slightly weaker than expected mainland GDP data, which showed a 0.1% q/q rise in Q3 against 0.2% expected.