North American Summary and Highlights 22 June
Overview - The USD remained generally bid, though GBP held up well after UK PM Starmer’s resignation.
North American session
The USD remained mostly firm in North America though USD/JPY, after rising to a high of 161.90, slipped to 161.25 before moving back above 161.50. EUR/USD moved lower to near 1.1420 from above 1.1460. GBP/USD however was stable near 1.1325 as EUR/GBP fell to .8625 from .8675 in the European morning. EUR/CHF was also softer, near .9240 from .9260.
There was no significant US data but Canadian CPI was stronger than expected in May, rising to 3.2% yr/yr from 3.0%, though CPI-Median at 2.1% and CPI-Trim at 2.0% were unchanged from April. USD/CAD was little changed, as was AUD/USD, which remained near .70 though seeing a fresh nudge below in late trade.
European session
UK PM Starmer confirms that he will resign, with nominations for the leadership opening on July 9th. Sterling unmoved as the outcome - and Burnham’s succession - already viewed as a given.
Otherwise, a relatively subdued European morning, holding on to the intraday risk improvement seen over the course of the Asia session after progress made on Iran talks in Switzerland, following the tense weekend - Nikkei and Kospi finishing firmer, Nasdaq now also into the plus at 0.1%, and Brent reversing to be off -$1.5.
Dollar remains firm, holding on to the minor net gains, and remaining a solid footing out of the recent upside break. USD/JPY still pressuring into the highs, still testing intervention threats amid the dollar-led action.