North American Summary and Highlights 22 Mar

North American session

The USD saw some early losses, particularly versus the JPY, as UST yields dipped, though generally took on a firmer tone. USD/JPY skipped to 151 from 151.60 before gradually reversing most of the dip. GBP/USD moved off its lows as EUR/GBP found sellers at .86. EUR/USD was heavy, drifting down to test 1.08, while EUR/CHF slipped to .9710 from .9750. 

Comments from Fed’s Powell did not touch on monetary policy. The only data release was a 0.3% dip in Canadian retail sales which masked gains ex autos and in real terms. Despite the not-so-weak data, USD/CAD moved above 1.36 as oil slipped, while AUD/USD kept to a tight range just above .65. 

European morning session

The USD was generally firmer through the European morning, with GBP suffering the most. GBP/USD fell 55 pips to 1.2585 from an open at 1.2640, with EUR/USD slipping 20 pips to 1.0820. There were similar declines for AUD and CAD but USD/JPY was not much changed near 151.55. Scandis were also both weak, with EUR/SEK and EUR/NOK both gaining around 3 figures from the open.

UK February retail sales early in the session were slightly stronger than expected at flat m/m, but of little relevance after the volatility of the previous two months. The German IFO business climate index was stronger than expected, with both current conditions and expectations improving, but had only a very modest positive impact on the EUR.