North American Summary and Highlights 27 May

North American session

After seeing an early correction from European gains, the USD advanced modestly to reach fresh highs after a stronger than expected May consumer confidence index, up to 98.0 from 85.7. moving above March’s level as well as April’s. Earlier April durable goods orders had fallen by 6.3% after a 7.6% March increase, with a 0.2% rise ex transport after a 0.2% March decline, both a little stronger than expected but with little market impact. 

USD/JPY advanced from near 144 to a high of 144.45 before slipping back to 144.30. EUR/USD slipped from 1.1370 to a low of 1.1324 before settling near 1.1335. GBP/USD found support at 1.35. AUD/USD was quiet near .6450 but USD/CAD advanced above 1.38 from 1.3765. Despite the strong data UST yields slipped but equities were stronger.  

European morning session 

The European morning saw the USD recover the ground lost on Monday with the JPY seeing the most pronounced decline helped by a positive tone to equities. This was likely a delayed reaction to the Trump extension of the deadline for the 50% tariff on the EU to July announced at the weekend. The EUR also fell back against GBP, helped by weaker than expected French May provisional CPI data, which showed a 0.6% y/y gain against a market consensus of 0.9%. EUR/USD was down 30 pips on the morning to 1.1350, while USD/JPY extended the rise seen in Asia, gaining 60 pips to 143.90. The USD was stronger across the board, with GBP the best performer among the other majors, with GBP/USD falling just 15 pips to 1.3545. The only other data was the European Commission confidence survey, which was marginally more positive than expected.