North American Summary and Highlights 27 Feb

North American session

Another very quiet session in the FX markets saw the USD slightly higher against the CAD and JPY, but otherwise not much changed. US data was on the weak side of expectations but had little impact.

January durable goods orders plunged by an even steeper than expected 6.1% with the fall fully explained by a plunge in aircraft. Ex transport data was however was also on the weak side of expectations, with a fall of 0.3%, and with December now reporting a 0.1% decline rather than a 0.5% increase. February consumer confidence with a fall to 106.7 from a downwardly revised January reading of 110.9 (from 114.8) put the index below December’s 108.0 too, though remains above the levels seen in September, October and November. A recent bounce as hopes for rate cuts built appears to be fading.

European morning session

USD/JPY fell around 25 pips to 150.25, but the USD was otherwise not much changed through the European morning. EUR/USD was initially a little firmer edging up around 10 pips from the open near 1.0850, but softer than expected French consumer confidence data and weaker than expected Eurozone money growth helped the EUR to return to opening levels. 

Otherwise, the AUD and CAD were both marginally firmer, and the scandis slightly weaker, but without any clear rationale. Equities edged a little higher, while bond yields were slightly softer.