North American Summary and Highlights 18 February

North American session

There was not much FX movement in North America. UST yields were firmer and this helped USD/JPY advance to 152 after an early dip to near 151.50. EUR/USD ended in the lower half of a 1.0435 to 1.0485 range. 

Data had limited impact though a dip in February’s NAHB homebuilders’ index to 42 from 47 was a brief negative for the USD. Earlier February’s Empire State Manufacturing survey increased to 5.7 from -12.6. Canada’s January CPI rose to 1.9% from 1.8% yr/yr with gains in the BoC core rates, which helped USD/CAD to largely erase earlier gains.   

European morning session 

A quiet European morning saw USD/JPY fall a modest 10 pips to 151.75, USD/CAD down 10 pips to 1.4190 and USD/CHF down 10 pips to 0.9010, but there was little other net movement. EUR/USD was unchanged near 1.0460.  

GBP/USD finished slightly lower just below 1.26 after initially gaining ground on the back of stronger than expected UK labour market data. The data showed slightly more employment than expected and a fall in the unemployment rate to 4.4% in December, but average earnings growth was unchanged as expected at 5.9%. EUR/GBP initially dropped around 10 pips below 0.83 but recovered to be slightly higher at 0.8305 by the end of the session.  

Swedish CPI was as expected with the targeted CPIF rising 2.2% y/y. EUR/SEK edged a touch lower on the news but recovered to be little changed just above 11.21.