North American Summary and Highlights 7 March
Overview -
European currencies advanced in the European morning before stabilizing in North America. US employment data produced a limited reaction but comments from Fed’s Powell subsequently lifted UST yields, equities and USD/JPY.
North American session
US employment data was on the weak side of expectations, with a 151k February increase, a 0.3% rise in average hourly earnings and a rise in unemployment to 4.1% from 4.0%, but not dramatically. USD/JPY slipped briefly below 147 from 147.75 and EUR/USD saw a brief bounce to a high of 1.0889 from 1.0855, though this was reversed and EUR/USD traded a narrow range for the rest of the session. GBP/USD and AUD/USD also struggled for direction.
USD/JPY picked up from near the lows to 148 after comments from Fed’s Powell, who said the Fed was well positioned to wait for greater clarity, lifting both UST yields and equites. USD/CAD rose to a high of 1.4426 from 1.4435 after a weak 1.1k rise in February Canadian employment, and threats from Trump to impose reciprocal tariffs immediately, but erased the majority of the rise after Powell’s comments.
European morning session
European currencies continued to gain ground in the European morning. EUR/USD rose 40 pips to 1.0865 with the CHF and scandis keeping pace. GBP/USD also rose 25 pips to 1.2925, but EUR/GBP rose 10 pips to 0.8405. USD/JPY was net little changed near 147.50, while AUD/USD edged slightly higher.
Datawise, Eurozone Q4 GDP was revised up slightly to 0.2% q/q, with employment growth of 0.1%. German factory orders fell a sharp 7% in January following the 5.9% December gain, but the underlying trend remains fairly flat.