North American Summary and Highlights 29 June
Overview - The USD was generally softer, GBP/USD leading with help from a speech by the likely next Prime Minister, Andy Burnham.
North American session
The USD saw a gradual drift lower in the morning before stabilizing at lower levels in the afternoon. Oil was slightly firmer despite a lack of fresh escalation in the Middle East. The Supreme Court ruled that Trump did not have the power to dismiss Fed Governor Lisa Cook. June’s Dallas Fed manufacturing index of 0.0 was almost unchanged from May’s 0.4.
USD/JPY remained firm but did not test 162. EUR/USD moved up to around 1.1425 from 1.14. EUR/JPY advanced just above 185, EUR/CHF picked up too but came off a high of .9235. EUR/GBP was lower below .8620 if off the lows, a speech by the expected next PM Andy Burnham getting a decent reception from the UK gilt market. GBP/USD rose to near 1.3260 from 1.3220 before Burnham spoke and near 1.32 near the European open as GBP shorts were trimmed. USD/CAD and AUD/USD saw limited moves.
European session
A slow morning, the dollar still a little dragged by the hangover of overbought conditions but still held by recent capping. Options this week and wait for major events like payrolls may also tend to reinforce the stall. EUR/USD for instance around the 1.14 figure.
EZ M3 3.2% from 2.7% vs market 2.7%. Loans to household 3.1% from 3%, non-financials 4% from 3.4%. Spain HICP unchanged at 3.6%y/y vs market 3.4%. EZ economic sentiment 95.0 from 93.7 vs 94.3 expected. UK BoE consumer credit 1.66bn vs market 1.8bn, mortgage lending 2.89bn vs market 4.55bn, and approvals 56.2k vs market 62.9k. Equities a little firmer, Nasdaq future +1%, while oil is calm, up around $0.6-0.8.