North American Summary and Highlights 13 Apr
Overview - With equites resilient to the failure of the US-Iran peace talks the USD’s Asian bounce was fully reversed.
European and North American sessions
The USD slipped back after its bounce seen on the failure of the weekend US-Iran peace talks, gradually in the European morning, with the USD losses gaining momentum in North America to leave it down on the day. Equities were resilient eventually building gains, with traders looking towards a standoff over the Strait of Hormuz as the US and Iran waited to see who could absorb more economic pain, rather than military escalation. The one US data release, a 3.6% fall in March existing home sales, was weaker than expected, but not a factor in the USD slide.
EUR/USD rebounded above 1.1750, a big figure from its Asian low, but lagged GBP/USD, which reached 1.35, while EUR/CHF gains were also erased. AUD/USD also advanced by a big figure to touch .71 while USD/CAD fell below 1.38, down a big figure. USD/JPY, after failing to test 160, slipped back to 159.35. EUR/JPY, after breaking above 187, got close to 187.50.