North American Summary and Highlights 5 Aug

North American session

June’s US trade deficit of $60.2bn was down from $71.7bn in May and the lowest since September 2023. This was followed by a weaker than expected July ISM services index of 50.1 from 50.8. There was little instant reaction to the data but the USD, with longer end UST yields. subsequently slipped. EUR/USD rose to 1.1570 from 1.1540. Gains in GBP. AUD and CAD were more modest while USD/JPY remained firmer near 147.70, meaning that EUR/JPY near 170.80 was up by close to a big figure on the day.  

European morning session 

The USD, with UST yields, was generally slightly stronger in the European morning. USD/JPY led the way, rising to 147.70 from 147.15. Otherwise moves were modest. EUR/USD slipped to 1.1540 from 1.1560 while USD/CAD touched above 1.38 from 1.3780. GBP/USD and AUD/USD were little changed.