North American Summary and Highlights 26 Jun
Overview - The USD was softer in both Europe and North America, with eyes on the Fed more than mixed US data.
North American session
US data was mixed, with a downward revision to Q1 GDP led by consumer spending and a rise in May’s advance goods trade deficit, but a fall in initial claims and stronger durable goods orders, even outside a sharp surge in aircraft. The USD did however see some modest slippage, assisted by Fed’s Daly stating that fall was promising for a rate cut, though most Fed speakers were fairly cautious.
USD/JPY kept to a tight range a little above 144, while EUR/USD kept to a 1.1690 to 1.1740 range. The riskier currencies saw slightly stronger gains, GBP/USD rising to 1.3735 from near 1.37, AUD/USD to .6550 from .6530, and particularly USD/CAD, which fell to 1.3635 from 1.3690.
European morning session
The USD weakened in the European morning falling around 0.5% against the EUR and JPY and 0.25% against the AUD and CAD. The SEK underperformed, falling against the EUR and little changed against the USD after weaker business confidence data and a decline in the economic tendency survey.
Otherwise, there was little news through the morning, with USD weakness reflecting continued reverberations from the report in the WSJ that Trump might announce Powell’s replacement as Fed Chair as early as September or October.