North American Summary and Highlights 13 Feb
Overview - A slightly softer than expected US CPI weighed on the USD but overall moves were modest.
North American session
US CPI was softer than expected with a 0.2% rise overall in January. The core rate was on consensus at 0.3% though some were relieved not to see a sharper rise to open the year. The USD slipped on the release and while the initial move was largely reversed, the USD saw renewed losses by mid-session. USD/JPY slipped back to 152.75 and AUD/USD corrected to mid-range around .7070. USD/CAD however kept to a tight range and EUR/USD gains were marginal to around 1.1870. GBP and CHF outperformed the EUR, with EUR/GBP falling below .87 from .8715 and EUR/CHF falling to .9115 from .9130.
US Trade Advisor Navarro denied a report that the US was considering reducing metal tariffs. The Supreme Court set February 20 as a date to announce decisions. While it is unclear which decisions could be announced, it is possible this could include a judgement on Trump’s tariffs. Late in the session Fed’s Goolsbee responded cautiously to the CPI, stating that the US was not on a path to 2% inflation
European morning session
The USD advanced in the European morning, led by USD/JPY which rose above 153.50 from below 153 though EUR/USD was stable near 1.1860. The riskier currencies saw some volatility. Net moves were mostly modest though AUD/USD fell to .7050 from .7090.