North American Summary and Highlights 2 Jan

North American session

In a session with limited news, the USD erased some early losses, the moves largely guided by UST yields. USD/JPY slipped to near 156.50 before rebounding to 156.85 while EUR/USD rose as high as 1.1765 before slipping back to 1.1725. EUR/GBP remained slightly weaker near .8715 while EUR/CHF fell to .9285. The commodity currencies were little changed, with equities quiet. December’s final U.S. S and P manufacturing PMI was unrevised at 51.8. 

European morning session 

A quiet European morning saw EUR/USD edge a little lower, dropping 20 pips to 1.1725. Downward revisions in Eurozone manufacturing PMIs helped the decline, with the Eurozone index showing its second straight decline to 48.8. UK PMI was also revised lower, but remained higher in December than November at 50.6, but GBP fell with the EUR with EUR/GBP only slightly lower at 0.8715. The Eurozone money data was, however, a little stronger than expected with M3 up 3.0% y/y and loans to households up 2.9% y/y.  

The EUR was fairly steady against the scandis but otherwise fell back against the JPY, CHF and commodity currencies which were all unchanged against the USD.