North American Summary and Highlights 30 Apr

North American session

The USD got a lift from a stronger than expected 1.2% increase in the Q1 US Employment Cost index. Weaker US consumer confidence at 97.0 in April versus 103.1 in March provided some restraint, with EUR/USD getting close to pre-ECI levels around 1.0720, but the USD advance subsequently resumed. EUR/USD fell to 1.0675 while USD/JPY advanced to 157.75 from near 1.57.

A rise in USD/CAD to 1.3760 from 1.3675 was also assisted by February’s Canadian GDP rise of 0.2% falling short of expectations.  AUD/USD fell 40 pips to .6480 while GBP/USD fell 45bps to 1.25.

Shortly after the Employment Cost data February House Price Indices from FHFA and S and P/Case Shiller came in stronger than expected while shortly before the consumer confidence data April’s Chicago PMI was very weak at 37.9 from 41.4. 

European morning session

EUR/USD gained around 25 pips in the European morning, reaching 1.0730, benefitting from stronger than expected Eurozone GDP data. Q1 GDP came in at 0.3% q/q against a market consensus of 0.1%, with all the big 4 countries reporting GDP grew more than expected. Eurozone HICP for March was also released, and while the headline rate was as expected at 2.4% y/y, the core was slightly stronger than expected at 2.7%. Other data included German retail sales, which were stronger than expected on the month in March, although the underlying trend remains fairly flat, and German unemployment which rose a tad more than expected at 10k in March.

The EUR aside, the USD made some early gains but finished the session little changed against most currencies.