North American Summary and Highlights 15 June
Overview - The USD saw some correction from its initial losses seen on the US-Iran peace deal.
North American session
The USD saw some correction from its losses seen in the aftermath of the US-Iran peace deal, guided by UST yields gradually reversing their losses. USD/JPY held above 160 and picked up to 160.30, while EUR/USD fell below 1.16. There was not much movement in EUR/GBP or EUR/CHF. AUD/USD was also little changed though USD/CAD saw marginal gains.
US data was on the soft side of expectations. June’s Empire State manufacturing index slipped to 5.7 from 19.6, May industrial production rose by only 0.1%, with manufacturing unchanged while June’s NAHB homebuilders’ index slipped to 35 from 37.
European session
Not a huge amount of follow through momentum on show in the European morning, at least in FX – the positivity on the planned deal signing on Friday remains from overnight, albeit as does some uncertainty over some of the fudge elements (Israel in Lebanon, nuclear details, exact nature of the Strait opening and so on).
Still, determination to reach the exit ramp on show and oil is -$4 ½ on front month Nymex around $80. EUR/USD sits on the regained 1.16~ level. NOK/SEK sees further measured profit-taking retracement. Nasdaq future +2% amid generally firmer risk and lower bond yields (DE2 -6bp and back towards May range lows for instance).