North American Summary and Highlights 17 March
Overview - The USD was mostly softer though USD/JPY rebounded from early losses supported by UST yields.
North American session
February US retail sales were weaker than expected overall with a 0.2% increase though ex autos at 0.3% were in line. Equities took comfort from a 1.0% rise in the control group that contributes to GDP, reversing a January decline. Markets ignored weak data from March’s Empire State manufacturing survey and later the NAHB Homebuilders’ index.
Equity gains lifted the commodity currencies, AUD/USD to .6390 from .6350 while USD/CAD fell below 1.43 from 1.4350. EUR/USD remained firm sustaining a move above 1.098 while GBP/USD advanced to test 1.30. USD/JPY however was lifted by UST yields to 149.25 from 148.50.
European morning session
The USD fell back across the board through the European morning, dropping around 0.25%. There was little movement on the crosses, with only the NOK standing out from the crowd, gaining 4 figures against the EUR, dropping to 11.53.
There was no data of any note, with Italian February CPI unrevised at 1.7% y/y on an HICP basis. European equities were modestly higher, but there was little movement in yields.