North American Summary and Highlights 25 March
Overview - The USD was generally weaker, but saw its lows before a fall in US consumer confidence.
North American session
The USD extended European losses early in North America, most notably on USD/JPY which fell below 150. Weak US consumer confidence data, falling to 92.9 in March from 100.1, reaching its lowest since January 2021, saw the USD move off its lows versus the commodity currencies, AUD/USD back to .63 from a high of .6325, while USD/CAD recovered to 1.43 from a low of 1.4271 before some late slippage after Trump said Mexico and Canada have stepped up.
Trump was more critical of the EU, and EUR/USD slipped back to 1.08 from a high of 1.0830, continuing to underperform GBP/USD, as EUR/GBP fell below .8340. USD/JPY remained weaker, seeing a low of 149.55 but edged back towards 150 in late trade. US new home sales were close to consensus, up 1.8% in February to 676k, and overshadowed by the consumer confidence data.
European morning session
The USD was generally weaker through the European morning. USD/JPY lost 35 pips to trade at 150.20, and EUR/USD gained 15 pips to 1.0815 after dipping to 1.0780 mid-session. AUD/USD gained 0.5% to 0.6315, while GBP marginally outperformed the EUR. The SEK was the best performer with EUR/SEK dropping 5 figures to 10.85.
The only data was the IFO survey, which was in line with expectations, showing a strong gain in the business climate index to 86.7, led by strength in expectations although current conditions were also stronger. Equities were generally higher, supporting the riskier currencies.