North American Summary and Highlights 1 April

North American session

EUR/USD and USD/JPY were little changed near 1.0780 and 149.60 respectively. Risk sensitive currencies saw some gains as equities came of their lows, GBP/USD edging above 1.29, AUD/USD rising to 1.6270 from 1.6250 and USD/CAD falling from 1.44 to 1.4325. Canadian PM Carney promised retaliation on any fresh US tariffs while moves to oppose tariffs on Canada proceeded in the US Senate.  

US data did not make encouraging reading, February job openings down 194k with quits down and layoffs up, while March’s ISM manufacturing index fell to 40.0 from 50.3 with prices paid up to 69.4 from 62.4. 

European morning session 

The USD was generally slightly weaker through the European morning. EUR/USD pushed up around 10 pips, to trade above 1.08, USD/JPY fell back 20 pips to 149.60 and USD/CAD fell 20 pips to 1.4370. AUD/USD was not much changed. The EUR was weaker on the crosses against the CHF and scandis, but little changed against GBP.  

There wasn’t much news of note. Eurozone final manufacturing PMIs were revised slightly lower, while the UK PMI was revised slightly higher, but both remained at low levels. Eurozone CPI came in in line with consensus on the headline at 2.2% y/y but the core was slightly below expectations at 2.4%. European equities were stronger, recovering the ground lost on Monday, helped by lower yields, with US, UK and European bond yields all down around 7bps along the curve.