North American Summary and Highlights 31 Mar
Overview - The USD slipped, particularly versus EUR and JPY, on reduced fears of escalation in the Middle East conflict.
European and North American sessions
Suggestions from Trump that he could end the war without a reopening of the Strait of Hormuz reduced the risk of an escalation of the war and supported equities, which also got a lift from an Iranian suggestion that they were ready to end the war, if provided guarantees. The USD saw fairly steady losses against the EUR and JPY, USD/JPY falling below 159 from 159.70 and EUR/USD rising to near 1.1550 from 1.1470.
Other currencies were more volatile. EUR/GBP bounced to .8730 from .8690 while EUR/CHF advanced to .9240 from .9160 bringing USD spikes against both GBP and CHF which later corrected. USD/CAD was little changed after erasing a bounce while AUD/USD more than fully erased a dip to test .69.
Canadian GDP exceeded expectations to rise by 0.1% in January with the preliminary estimate for February up by 0.2%. US March consumer confidence rose to 91.8 from 91.0 despite higher inflation expectations. February job openings fell to 6.882m but January was revised up to 7.24m from 6.946m. Fed’s Schmid gave a hawkish take on the risks coming from higher energy prices.