North American Summary and Highlights 9 Mar
Overview - The USD opened firmer but eventually fully erased its gains, in line with volatile moves in oil.
European and North American sessions
Focus was almost entirely on the Middle East and the price of oil, which after surging to almost $120 reversed back to around $85 assisted first by G-7 finance ministers stating that they could take action to control prices, notably releasing oil stockpiles, and later after comments from Trump suggesting the war could be over soon, together with a report that he might further ease sanctions on Russian oil.
Markets, including equities and UST yields, reflected movements in oil, as did the USD. USD/JPY, after slipping from a 158.90 high, saw a late break below 158 where support had earlier been found. EUR/USD gains from near 1.15 stalled near 1.16 before breaking above on Trump’s comments. EUR/CHF saw a brief dup below .90 before bouncing to .9035 but EUR/GBP was slightly softer near .8650 as GBP advanced from below 1.33 to above 1.34. AUD/USD also moved steadily higher to .7070, up over a big figure from the low. AUD/CAD was also firmer at .96 after early CAD gains on higher oil prices were corrected.