North American Summary and Highlights 8 June
Overview - The USD came off its highs with oil, but remained mostly firm.
North American session
With Israeli PM Netanyahu stating he had halted strikes on Iran, after US President rump called for a cease fire, oil and the USD came off the day’s highs, but remained firm, the USD largely sustaining Friday’s bounce after the US non-farm payroll.
EUR/USD found support at 1.15 but gains were capped near 1.1550 and a move back to around 1.1535 was seen. USD/JPY however found support below 160 before returning to 160.20 meaning EUR/JPY found support above 184 before bouncing to 184.80. EUR/CHF picked up to .92 from .9185 while EUR/GBP never got far from .8640. USD/CAD made marginal gains above 1.3950 but AUD/USD was little changed near .7050.
European session
Consolidation of the sharp dollar moves seen on Friday, though still with risks of further extension in due course. Pullbacks to big figure areas such as 1.15 on EUR/USD holding as market unwinds intraday oversold conditions.
USD/JPY has another intraday pullback as it dances on the edge of the perceived higher risk intervention zone leaving it prone to noisy intraday positional swings. Blips back under160 from 160.20-30 before settling at the figure.
Nasdaq future also currently consolidates the mini-shakeout, up around 0.6%, following the steep corrective pullback ahead of the weekend. US2s stay on backfoot, as high as 4.2%. Oil holds +$3.5-4, but in recent standard range, following latest Israel strikes and amid US de-escalation focus.
German orders -3.8%m/m sa (mkt -2%), 1.6% y/y. EZ Sentix index -13.4 from -16.4 (mkt -14.6), slight improvement led by expectations. UK REC survey: permanent staff placements fell to 44.1, temporary 52.2 from 50.4, expanding (highest since April 2023). UK IDR pay settlements hold at 3.5% in 3mths to Apr.