North American Summary and Highlights 3 June
Overview - Slippage in EUR/JPY was the main move in Europe but North America saw the USD fall on weaker ISM manufacturing data.
North American session
The USD slipped on weaker than expected May ISM manufacturing index of 48.7, down from 49.2, with the slippage largely due to new orders sliding to a 12-month low of 45.4 from 49.1. USD/JPY, trading around 156.70 before the data, briefly touched below 156 before recovering to around 156.25. EUR/USD rose from around 1.0850 to touch 1.09 while GBP/USD rose from around 1.2740 to touch 1.28. EUR/JPY recovered to around 170.30 after falling as low as 169.72.
Equities came under some pressure and a bounce in AUD/USD after the data was mostly reversed while USD/CAD, after finding support at 1.36, moved above pre-data levels. EUR/CHF slipped but recovered from lows below .9750. Equities moved off their lows in the afternoon.
European morning session
EUR/JPY was the biggest mover in the European morning session, dropping around 60 pips to 170.20 after making new post-intervention highs at 170.89 overnight. The EUR/JPY decline was due to both a decline in EUR/USD and a decline in USD/JPY. EUR/USD fell 20 pips to 1.0835 while USD/JPY fell 30 pips to 157.10.
EUR/SEK also fell back, dropping 4 figures to 11.38 after much stronger than expected Swedish manufacturing PMI, but recovered to 11.40 by the end of the session. Final manufacturing PMIs in the rest of Europe showed offsetting revisions, and Eurozone manufacturing PMI was revised down marginally to 47.3, and UK manufacturing PMI also saw a marginal downward revision to 51.2.