North American Summary and Highlights 17 Jul
Overview - The USD was slightly firmer, the gains coming largely before what was generally positive US data.
North American session
US data was stronger than expected, with June retail sales up by 0.6%, initial claims falling to 221k from 228k and July’s Philly Fed manufacturing survey bouncing to 15.9 from -4.0. However, the boost to the USD from the data was small and brief, and the USD subsequently moved slightly below pre-data levels, EUR/USD near 1.16 and USD/JPY near 148.60. AUD/USD recovered from European lows to .6490.
European morning session
The USD was generally firmer in the European morning, EUR/USD falling to 1.1575 from 1,1625, and AUD/USD falling to .6460 from .6495. USD.CAD rallied to 1.3765 from 1.3715 and USD/JPY advanced to 148.80 from 148.40. However, GBP/USD was little changed near 1.34, with UK employment growth stronger than expected at 134k in the 3 months to May, though earnings growth slowed as expected, unemployment increased and June saw a 41k decline in payrolled employees.