North American Summary and Highlights 27 October
Overview - The USD was firmer supported by data while oil softened.
North American session
The USD drifted steadily of moderately higher through the session. Data was mostly supportive. Durable goods orders, up 1.8% overall, 0.5% ex transport were near consensus. However new home sales, down a marginal 0.6%, were more resilient than expected and consumer confidence at 91.7 from 84.2 saw a surprising bounce.
USD/JPY is getting close to 158. EUR/USD slipped to 1.1140 with EUR/GBP and EUR/CHF seeing modest losses. USD/CAD was firm, at 1.4050 from 1.4020 as oil slipped. AUD/USD saw little change.
European session
Dollar continues the week on a firmer footing, most pairs extending their corrections, with EUR/USD testing through 1.1150 to open back up the recent lows if the intraday break holds. USD/JPY also continues the bounce into previous supply, with the lift to 157.75 also encouraged by expiries, with large strikes in the 157.85-158 area later. Still rebalancing into this week’s central bank and event risk.
French spreads tested down to the lower 150bp~ support but bounced quite strongly from there. Monday’s high is in the way of a possible attempt to fill the post review gap. French Oct consumer confidence 80 from 85 (mkt 85), 2013 lows. EZ M3 unchanged at 3.5% (mkt 3.4%), loans to households also flat at 3.1%.