North American Summary and Highlights 2 Jun
Overview - The USD was weaker but downward momentum faded in a quiet North American session.
North American session
The USD remained weak in a subdued North American session. Lows were seen after May’s ISM manufacturing index fell to 48.5 from 48.7. April construction spending was also weak with a 0.4% decline. The USD attempted to recover as UST yields and equities reversed losses seen on the data but the USD recovery faded late in the session. EUR/USD peaked at 1.1450 and AUD/USD peaked at .65, USD/JPY traded between 142.50 and 143. USD/CAD moved back above 1.37 but AUD/CAD remained firmer near .89.
European morning session
The USD continued to decline through the European morning session. EUR/USD gained half a figure to 1.1430, while USD/JPY also fell around half a figure to 142.85. The CHF and scandis were slightly the best performers through the morning, gaining around 0.2% against the EUR, while GBP and the AUD moved in line with the JPY and the CAD gained even more modestly.
The CHF received some support from stronger than expected Q1 Swiss GDP data, which rose 0.5% q/q against a consensus of 0.4%. There were upward revisions in the Eurozone and UK manufacturing PMI numbers that may have helped the European currencies. However, UK money and credit data was on the weaker side, with no growth in M4 and weaker than expected mortgage approvals and lending.