North American Summary and Highlights 19 Feb
Overview - USD moved up as Fed easing thoughts were trimmed.
North American session
The USD pushed marginally higher after Thursday economic data, with the drop in jobless claims catching most attention following the January FOMC minutes shift of tone. However, some traders note that the wider than expected December trade deficit will mean some downside risks for Friday’s Q4 GDP release in the U.S. Traders also note that the supreme court ruling on reciprocal tariffs could be seen Friday, but this could be risk off (USD positive) but see Trump threatening more tariffs and the USD (USD negative).
European morning session
In Europe the USD edged up against European currencies, as the January FOMC minutes are seen lessening the prospect of Fed rate cuts this year. Reports that ECB president Lagarde will step down early did not have much impact, as it is not seen changing expectations of stable ECB policy rates well into 2027 given the differences of opinion within the ECB council. The USD saw less gains versus the JPY, as the JPY has already lost ground this week and traders are reluctant to test 155.00 before Friday U.S. GDP data.