North American Summary and Highlights 3 Nov
Overview - The USD slipped after weaker ISM manufacturing data but was mostly little changed. The CHF was weaker after a soft Swiss CPI.
North American session
October’s ISM manufacturing index was weaker than expected at 48.7 from 49.1, with prices paid falling to 58.0 from 61.9. USD/JPY slipped to 154 from 154.20 after the release but gradually recovered to near 154.20. EUR/USD picked up to 1.1535 from 1.1510 before correcting to 1.1520. There was little movement in EUR/GBP but EUR/CHF gains extended above .93. The USD made marginal gains versus AUD and CAD.
There was plenty of Fed talk, Miran dovish and Goolsbee, Daly and Cook all fairly moderate, though Daly was less dovish than her recent tone, which is notable though she does not vote this year or next.
European morning session
The EUR fell back in the European morning, dropping 25 pips to 1.1515 after failing a test of the 1.1540 resistance area in late Asia. There was no obvious trigger for the EUR dip, but the 1.1540 level had been the low in October and had broken on Friday, so the technical picture has deteriorated. The EUR was generally lower, but other risky currencies also fell against the USD, albeit mostly slightly less, with GBP/USD down 15 pips to 1.3130 and AUD/USD down 10 pips to 0.6545. USD/JPY was little changed, but the CAD and SEK fell back with the EUR, with USD/CAD rising 30 pips to 1.4040.
The weakest currency on the morning as the CHF, which fell back across the board after weaker than expected Swiss October CPI, which was down 0.3% m/m and up just 0.1% y/y. EUR/CHF rose 20 pips to test 0.93.