North American Summary and Highlights 29 October
Overview - An unchanged ECB decision gave the EUR an initial hit but a rebound was seen during the press conference.
North American session
Focus was on the ECB which left rates unchanged as expected. The statement as seen as dovish, seeing EUR/USD fall below 1.1120, but a more hawkish tone to the press conference saw a bounce extend to 1.1170. EUR/GBP was still weaker but found support at .8350.
US data was solid with a 3.4% rise in Q3 GDP, a 0.3% increase in September’s core PCE price index and initial claims still very low at 194k. USD/JPY was little changed, failing to hold above 158, while a USD/CAD move above 1.40 was also reversed. AUD/USD kept to a .7020 to .7040 range.
European session
Action largely consolidative moving out of the FOMC and into the ECB. USD/JPY holds to its recent 157.80-158 balance area, while EUR/USD holds to the mid 1.11-1.12 area, not yet mustering a covering bounce or a downside extension at this point.
NOK/SEK off a touch with oil, latter easing just over $1, on the back of WSJ reports that VP Vance sent a letter to Iran's Supreme National Security Council in an effort to restart negotiations. Market also eying Israel hung election result developments.
Swedish Q3 GDP also a solid 0.4% vs mkt 0.3%, keeping the yr/yr rate at 2.9% from 3.3%. In other data, UK credit data on the low side, consumer credit 1.9bn vs mkt 2.15, mortgage lending 3.87bn vs mkt 4.2, approvals 53.4k vs mkt 54k. EZ economic sentiment slips to 96.9 from 97.9 vs mkt 97.5. Belgium GDP 0.3%q/q vs mkt 0.2%.