North American Summary and Highlights 28 June
Overview - A rise in EUR/JPY was the main move of the day. The USD was little changed overall despite weak core PCE price data.
North American session
The USD saw only a brief dip on a subdued 0.1% increase in core PCE prices. Income with a 0.5% increase was above consensus but spending at 0.2% fell short. Fed’s Daly welcomed the core PCE price data soon after.
The main move of the day was a sharp subsequent spike in EUR/JPY through 172 that reached 172.40 before a modest correction. This saw USD/JPY and EUR/USD both firmer near 160.80 and 1.0710 respectively. AUD/USD extended gains to .6670 while USD/CAD slipped back below 1.37.
European morning session
The USD was generally softer through the European morning, losing around 0.15% against most currencies, but the AUD outperformed, gaining 0.5% or 30 pips. USD/CHF was the exception, trading little changed as EUR/CHF extended gains above 0.96.
Newswise there was some European data, but nothing particularly surprising, with French, Spanish and Italian preliminary CPI for June broadly in line with consensus. German unemployment rose a little more than expected, with the rate up to 6.0% for the first time since March 2021, and UK Q1 GDP was revised up slightly to 0.7% q/q from 0.6%, but there was little FX impact from any of the data.