North American Summary and Highlights 17 May
Overview - The USD advanced in Europe but moved lower in North America in a day with little fresh news.
North American session
The USD more than fully reversed European gains in North America. There was not much news. The one data release, April’s leading indicator, was weaker than expected at -0.6%, and Fed’s Bowman reiterated a hawkish stance, willing to hike if inflation progress stalls or reverses.
EUR/USD rose 35 pips to 1.0875. EUR lost ground to GBP as GBP/USD moved above 1.27, though EUR/CHF was stronger, reaching .9875. AUD/USD advanced 50 pips to .67, outperforming the CAD as USD/CAD found support at 1.36. For the most part the USD finished near the lows but USD/JPY, after slipping from 155.90 to 155.25, recovered to around 155.65.
European morning session
The USD was generally firmer through the European morning, with EUR/USD losing around 15 pips to 1.0845, USD/CAD rising 15 pips to 1.3640 and AUD/USD slipping 10 pips to 0.6655. USD/JPY made initial gains but finished the session only marginally firmer at 155.80, and GBP/USD was also only marginally softer at 1.2655.
The session was essentially newsless, with just the confirmation of the Eurozone April CPI at 0.6% m/m in April on the data front.