North American Summary and Highlights 9 Jul
Overview - The USD was slightly softer as UST yields slipped in a largely subdued day.
North American session
The morning saw the USD slightly softer as were UST yields, with USD/JPY slipping below 146.50 but EUR/USD with no clear direction around 1.1710. Trump announced tariffs ranging from 20-30% on The Philippines, Brunei, Algeria, Moldova, Iraq, Libya and Sri Lanka, all fairly close to April 2 levels.
US 10-year supply saw solid demand. FOMC minutes suggested only a minority held dovish views, but UST yields continued to slip. The USD remained slightly softer, USD/JPY below 146.30, and EUR/USD edging above 1.1720.
European morning session
USD/JPY dropped 40 pips and the CHF was also a little firmer, with USD/CHF down 10 pips to 0.7960, and GBP/USD also gaining around 15 pips to 1.36, but other pairs were not much changed in the European morning. European equities were very strong, rising more than 1% without an obvious trigger, despite the indication from Trump that there would be more announcements on tariffs.
There was no real reaction to the BoE financial stability report, which indicated that banks and households were generally solid, but highlighted the risk of sharp falls in asset prices