North American Summary and Highlights 13 May
Overview - The USD advanced versus JPY on higher US inflation expectations but slipped versus GBP and EUR.
North American session
The USD saw early losses with EUR/USD touching above 1.08 but a modest dip in USD/JPY to 155.50 from 155.90 was quickly reversed. The USD however received a lift from the New York Fed’s survey of consumer inflations expectations where the 1-year view bounced to 3.26% from 3.00% and the 5-year view increased to 2.82% from 2.62%, though the 3-year view slipped to 2.76% from 2.90%. The reaction was most noticeable in USD/JPY, which moved to 156.20 and remained firmer though the USD did edge off its highs elsewhere.
EUR/JPY gained almost a big figure on the day peaking above 168.50. EUR/CHF also advanced, touching .98, but EUR/GBP slipped back below .86. The commodity currencies saw little movement.
European morning session
EUR/USD gained around 15 pips and USD/JPY gained around 10 pips in a quiet European morning session. AUD/USD also gained around 10 pips but GBP/USD was little changed. EUR/SEK gained 3 figures and NOK/SEK traded slightly above parity.
There was no data of any significance, with a decline in Swiss sight deposits on the week not seen as likely to indicate any FX action.