North American Summary and Highlights 28 May
Overview - The USD saw modest slippage in the European morning but moved higher in North America. SEK was stronger after comments from Riksbank Governor Theeden.
North American session
The USD advanced in North America more than reversing losses seen in the European morning. There were no clear catalysts for the move. US May consumer confidence saw an unexpected increase to 102.0 from 97.5 but the USD advance actually took a pause after the release. Fed’s Kashkari said tightening was unlikely but not ruled out and he would not project more than two rate cuts in 2024.
USD/JPY reached 157.15 while EUR/USD and GBP/USD found support just above 1.0850 and 1.2750 respectively. AUD/USD fell below .6650 while USD/CAD touched above 1.3650.
European morning session
In a quiet European morning, EUR/USD was little changed near 1.0875 while USD/JPY gained around 20 pips to trade above 156.90. The USD was also generally slightly firmer elsewhere, with AUD and CAD both losing 0.1-0.2% and GBP/USD also marginally softer. The CHF outperformed with USD/CHF down 15 pips to 0.9105.
EUR/SEK fell back around 4 figures to 11.47 helped by comments from Riksbank governor Theeden saying a June rate cut is not on the cards. EUR/NOK gained slightly to trade above 11.40.
Datawise there as little of interest. German WPI rose 0.4% in April and Norwegian retail sales fell 0.3% (core).