North American Summary and Highlights 1 May
Overview - The USD slipped early in Europe led by a sharp drop in USD/JPY but recovered in North America, with Trump stating he would put a 25% tariff on EU autos.
European and North American sessions
Early Europe saw a steep drop in USD/JPY to below 156 from above 157 but a recovery to 157 was seen in North America. Oil was softer and equities firmer despite Trump stating he was not happy with Iran’s latest proposal. Trump also stated he would put a 25% tariff of EUI autos in the coming week which helped to reverse an earlier move in EUR/USD above 1.1750. EUR/GBP was still slightly firmer at .8735 from .8725 but EUR/CHF saw marginal losses. USD/CAD rebounded to near 1.3590 from near 1.3550 but AUD/USD gains were not fully erased, seeing AUD/CAD firmer. The US April ISM manufacturing index was unchanged at 52.7 but prices paid advanced to 84.6 from 78.3, reaching the highest level since April 2022.