North American Summary and Highlights 26 Feb
Overview - The USD saw some gains, particularly versus the GBP, as equities came under pressure.
European and North American sessions
After a quiet European morning the USD advanced in North America as equities came under pressure, particularly versus the riskier currencies, but came off its highs in the afternoon as equities came off their lows, assisted by signs of progress in US-Iran talks.
USD/JPY moved from marginally below to marginally above 156 but EUR/USD was little changed near 1.18, while USD gains versus AUD and CAD were also largely erased. GBP underperformed as the results of a by-election where the ruling Labour Party was struggling to hold a previously safe seat were awaited, with GBP/USD falling below 1.35 from 1.3550 and EUR/GBP rising to .8750 from 8720. While UST yields slipped, Gilt yields slipped further.
Data showed US initial claims up to 212k from 208k but still below expectations. Fed’s Miran called for four 25bps easings in 2026.