North American Summary and Highlights 12 November
Overview - The USD was stronger, supported by UST yields and a weaker German ZEW survey.
North American session
Buoyed by UST yields the USD was stronger, though USD/JPY gains stalled ahead of 155 and EUR/USD found support near 1.06. GBP was particularly weak with GBP/USD falling below 1.2750 and EUR/GBP rising to .8330. The commodity currencies were choppier, and net little changed.
The Fed’s Senior Loan Officer Opinion Survey of bank lending showed weaker demand for C+I loans. Fed’s Kashkari suggested a pause in rates was possible if inflation surprised on the upside.
European morning session
The USD continued to make gains across the board through the European morning. EUR/USD made another new post April low at 1.0611, with the low for the year at 1.0601 in focus. The EUR weakness was helped by a weaker than expected ZEW survey, which saw declines in both the sentiment and the current conditions index, with the current conditions index at its lowest since the pandemic. USD/JPY advanced above 154, threatening the post-election highs.
GBP slightly outperformed the EUR, with EUR/GBP dropping to 0.8285 from an open above 0.8290. The main news of the morning was the UK labour market data. This was mixed, with the unemployment rate rising unexpectedly to 4.3%, but average earnings growth coming in higher than expected. EUR/GBP initially edged up after the data but fell back by the end of the session.