North American Summary and Highlights 2 Apr

North American session

In a quiet session the USD saw modest losses, with USD/JPY seeing a brief dip below 151.50 while EUR/USD peaked at 1/0779 before correcting to near 1.760. GBP and AUD sustained European gains but USD/CAD reversed most of its European losses. Equities were weaker.

February JOLTS data saw job openings in line with expectations, up 8k to 8756k though January was revised down from 8863k to 8748k. A 1.4% rise in February factory orders was slightly stronger than expected. Fed speakers Mester and Daly, both voters, this year, saw little urgency to cut rates though expect easing will be seen this year. None of this had any significant market impact. Wednesday has a busier calendar of Fed speakers, including Powell who will speak on the economic outlook

European morning session

A mixed session for the USD, with the riskier currencies gaining some ground while the CHF fell back. EUR/USD gained only around 10 pips, but AUD, GBP and CAD were stronger, rising 0.2-0.3%. USD/JPY was net little changed after some early losses, but USD/CHF gained 20 pips and EUR/CHF was up 30 pips to 0.9760.

Newswise, German state CPI data came in slightly below the published consensus, but probably in line with market expectations after the softer French and Italian CPI data seen on Friday. Eurozone and UK final March manufacturing PMI data was revised up, with the UK index rising above 50 for the first time since July 2022. UK money data was also on the strong side of expectations, with M4, mortgage approvals and lending and consumer credit all stronger than expected.