North American Summary and Highlights 26 July
Overview - The USD ended little change. USD/JPY did advance in Europe, but corrected lower after subdued US core PCE price data.
North American session
UST yields and equities rallied as June core PCE prices came in on consensus at 0.2%, and slightly less before rounding. This did see USD/JPY slip to a low of 153.15 from 154.70 before recovering to 153.75 but EUR/USD was stable near 1.0860. GBP/USD dipped to 1.2350 before recovering to 1.2475. AUD/USD was stable but USD/CAD bounced from near 1.38 to see highs near 1.3850.
Other US data saw personal income with a 0.2% increase while spending rose by 0.3%. Later the final July Michigan CSI was revised up to 66.4 from 66.0 as an upward revision h a 0.2% increase while spending rose by 0.3 to expectations outweighed a downgrade to current conditions.
European morning session
USD/JPY gained around 60 pips to 154.20 through the European morning as equity markets extended the recovery that started on Thursday in North America. EUR/CHF was also firmer, rising 20 pips to 0.9585, but most other pairs were little changed, although the more risk positive currencies were marginally firmer.
There wasn’t much news of any note. Swedish unemployment data showed the seasonally adjusted unemployment rate unchanged at 8.2%. Norwegian retail sales fell sharply by 5.1% in June, but this followed a 4.7% rise in May so the data was clearly seasonally impacted.