North American Summary and Highlights 29 April
Overview - The USD was a little firmer in Europe but corrected in North America after a record advance goods trade deficit, USD/JPY leading the move in each direction.
North American session
The USD took an early hit as the March advance trade deficit rose to a record $162.0bn from $147.8bn in February on a pre-tariff surge in imports, raising the risk of a decline in Q1 GDP. Subsequent data was also weak, a 288k decline in March job openings, and a fall in April consumer confidence to 86.0 from 93.9, but these had less market impact. UST yields fell, but equities were firmer, supported by reduced tariffs on imported auto parts.
USD/JPY fell to 142 from 142.75 while EUR/USD moved above 1.14 from 1.1375. USD/JPY later saw a partial recovery to 142.35, while EUR/USD gains were largely erased. Despite resilient equities, AUD/USD slipped below 0.64. USD/CAD was choppy in a range centered around 1.3840.
European morning session
The USD was a little firmer through the European morning, particularly against the JPY and CHF, with only marginal gains against the riskier currencies. USD/JPY and USD/CHF both rise around 30 pips to 142.70 and 0.8360 respectively, but EUR/USD, GBP/USD and AUD/USD were less than 0.1% lower on the session. The CAD was the best performer, with USD/CAD falling 30 pips to 1.3840, following the confirmation of the Liberal victory in the Canadian election.