North American Summary and Highlights 13 Jun

North American session

The USD corrected European gains in North America, though the correction lost momentum late in the session as Iran launched a retaliatory attack on Israel. USD/JPY was relatively resilient holding on to most of its earlier gains, but did slip back below 144. EUR/USD recovered to 1.1550 from 1.15 and GBP/USD reached as high as 1.36 from 1.3520 before correcting to 1.3560. EUR/GBP and EUR/CHF saw limited North American movement. With oil sustaining a sharp bounce USD/CAD fell below 1.36 though AUD/USD could not hold a move back above .65. 

The only US data release was a stronger than expected preliminary June Michigan CSI of 60.5 from 52.2 in May as tariff fears were reduced. The 1-year inflation expectation fell sharply to 5.1% from 6.6% though the 5-10 year view at 4.1% was down only marginally from 4.2%. UST yields picked up but equities were weaker, an attempt to recover from early weakness fading after the Iranian retaliation.  

European morning session 

Safe haven status following Israel’s attack on Iran lifted the USD. EUR/USD touched below 1.15 before seeing a modest correction while USD/JPY peaked at 144.44. EUR/CHF recovered from Asian lows but at .9360 remained below levels seen before the Israeli attack. EUR/GBP saw some early gains but later slipped back to touch slightly below .85.