North American Summary and Highlights 26 May
Overview - The USD saw some correction from weekend losses that followed rising hopes for Middle East peace, led by USD/JPY. EUR saw some support from comments by ECB’s Schnabel.
North American session
The USD saw some gains as the dip that followed signs of progress towards peace during a long weekend faded. USD gains were led by USD/JPY, extending above 159.30. EUR/USD erased its European gains but EUR/GBP advanced to .8650 from .8640 as GBP/USD slipped to 1.3450 from 1.3460. EUR/CHF marginally extended its European gains. AUD/USD and USD/CAD saw little movement.
May US consumer confidence slipped to 93.1 from 93.8 but with April revised up from 92.8 the data was slightly stronger than expected, holding up better than the record low Michigan CSI released on Friday.
European session
EUR/USD gained around 10 pips through the morning, helped by early hawkish comments from ECB board member Schnabel. USD/JPY gained 20 pips to 159.20 and EUR/CHF gained 15 pips to 0.9130, reflecting a generally risk positive tone as markets anticipate a US/Iran deal. USD/CAD was also marginally softer but GBP/USD and AUD/USD were little changed. However, while yields were generally lower except for the EUR, equities were also a little softer.