North American Summary and Highlights 25 Jun

North American session

The USD moved higher through the North American session, EUR/USD leading the way moving above 1.1660 from slightly below 1.16. EUR/GBP made only marginal gains as GBP/USD advanced above 1.3660 from just below 1.36, but EUR/CHF was firmer near .9375. USD/JPY peaked at 145.95 before slipping to 145.15. AUD/USD moved back above .65 but USD/CAD was little changed. 

At the NATO summit Trump threatened extra tariffs on Spain for lagging on defense spending but this may have eased fears that the EU as a whole would receive such treatment. Fed’s Powell repeated Tuesday’s House testimony to the Senate. May US new home sales saw a sharp 13.7% decline to 623k but this did not trigger a significant market reaction.  

European morning session 

The USD was firmer through the European morning, primarily against the JPY, with USD/JPY rising 50 pips to 145.65. Elsewhere, the USD’s gains were more modest, with EUR/USD and GBP/USD both down around 15 pips, while AUD and CAD were not much changed. NOK/SEK continues to edge lower. 

News was thin on the ground, with little data of note. Spanish Q1 GDP was unrevised at 0.6%. Equities were modestly weaker and yields slightly firmer.