North American Summary and Highlights 13 Aug
Overview - The USD was softer on Fed easing expectations, with most of the move seen in Europe.
North American session
With no significant data it was a quiet session but the USD tone remained softer as UST yields slipped in anticipation of a September FOMC easing. Two afternoon Fed speakers, Goolsbee and Bostic, however sounded less than convinced of the need for easing and the USD finished off its lows, USD/JPY near 147.45 from 147.10 and EUR/USD near 1.17 from 1.1730. GBP/USD held up better than most, and EUR/GBP fell below .8625.
Bank of Canada minutes from July 30 showed disagreement on whether further easing would be needed, but there was little market response, USD/CAD also moving off its low to 1.3770 from near 1.3750.
European morning session
The USD fell back across the board through the European morning. EUR/USD rose half a figure to 1.1730, while USD/JPY lost 75 pips to 147.25. GBP outperformed the EUR and kept pace with JPY gains, with EUR/GBP falling to 0.8640 from 0.8655. AUD and scandis moved in line with the EUR, while CAD underperformed, with USD/CAD dropping just 30 pips. CHF outperformed the EUR, with EUR/CHF dipping 15 pips to 0.9410.
The moves came without an obvious trigger, with the outperformance of the JPY and CHF slightly at odds with the gains in equities seen overnight and though the session. There was no data of note during the session, with Spanish and German July CPI unchanged from the preliminary releases.