North American Summary and Highlights 12 Feb
Overview - Weak US data contributed to risk off sentiment, leaving the USD mixed but marginally firmer overall.
European and North American sessions
A 0.1% increase in Q4 UK GDP was weaker than expected but the market reaction was modest. US data was also weaker than expected, with initial claims slipping only to 227k from 232k , with a fall of 8.4% in January existing home sales following. The soft US data weighed on UST yields and may have contributed to a slide in equities that gained momentum later. USD/JPY slipped from highs near 153.75 to lows near 153.25 before returning to near 153.
Equity weakness weighed on the riskier currencies, USD/CAD moving above 1.36 after finding support above 1.3550 and AUD/USD falling below .71 after peaking near .7150. GBP/USD saw a brief move above 1.3650 before finding support near 1.36. EUR/USD traded quite a tight range around 1.1870 but a dip in EUR/CHF to .9130 from .9150 reflected risk off sentiment. Overall the USD was marginally firmer.