North American Summary and Highlights 4 August
Overview - While the market saw some optimism on Middle East peace prospects, the FX market was quiet.
North American session
Oil saw some early losses on Middle East peace hopes, with UST yields also lower and equities firmer, but the USD saw little movement. June’s trade deficit was close to expectations at $73.3bn versus $77.6bn in May.
USD/JPY dipped to 157.10 from 157.60 before recovering to 157.80. EUR/USD edged up to 1.1530 from 1.1510. EUR/GBP erased a European dip to return to .8575 while EUR/CHF advanced to .9335. USD/CAD was firmer at 1.4070 from 1.4040 though June’s Canadian trade surplus at C$3.9bn was little changed from $3.7bn in May and wider in real terms. AUD/USD however also advanced, to .7050 from .7020.
European session
A quiet morning, leaving the market consolidating with some backfilling on recent action after some oversold moves. USD/JPY still sitting back at Monday’s highs. AUD retains its slightly firmer tone overnight after data, risk tone broadly positive (copper +1.2%, Nasdaq +0.5%).
Oil also doing a bit of backfilling too, Brent nudging back into Monday’s gap (+$2.3) as the market waits to see if talks actually materialise and go anywhere after Iran’s denials and with shipping still difficult. NOK a touch firmer.