North American Summary and Highlights 17 June
Overview - EUR/JPY gains were the main story, though the USD some lost ground generally in North America.
North American session
After some early gains the USD drifted steadily lower through the session. USD/JPY was relatively resilient, slipping to near 157.75 after a test of 158 failed. EUR/USD advanced to 1.0730 meaning that EUR/JPY gains extended to 169.30. GBP/USD advanced to 1.27, seeing EUR/GBP partially correct from earlier gains. EUR/CHF also moved off its highs, but remained firm. USD/CAD slipped to 1.3730 from 1.3760 while AUD/USD edged back above .66.
There was not much news. June’s Empire State manufacturing survey was stronger than expected at -6.0 from -15.6 while Fed’s Harker said he expected only one easing this year.
European morning session
After initial dips, both EUR/USD and USD/JPY gained ground through the European morning, so that EUR/JPY finished up as the main mover, rising around 30 pips from opening levels to 168.80, with both EUR/USD and USD/JPY gaining around 10 pips. The EUR generally gained ground across the board, with the EUR and USD both a little higher against GBP, scandis and CHF, with AUD/USD and USD/CAD little changed.
The main data of interest was the Q1 Eurozone wage data, which came in above expectations at 5.3% y/y with the labour cost index at 5.1% y/y. The EUR recovery may have been helped to some extent by this data, but also looks to reflect slightly less panicky sentiment around the French election, although the polls continue to project a messy election with the right wing RN the largest party.