North American Summary and Highlights 11 March

North American session

A Trump announcement that steel and aluminium tariffs on Canada would be doubled to 50% in response to Ontario’s’ 25% surcharge on electricity exports to the US sent USD/CAD surging above 1.45 from 1.4415, and sent equities lower, but was reversed when Ontario Premier Ford agreed to suspend the surcharge after a conversation with US Commerce Secretary Lutnick. USD/CAD fell back to 1.44 while equities recovered, supported also by Ukraine agreeing to a 30-day ceasefire in return for renewed US aid, though Russia’s response is still awaited. 

After an early move above 148 USD/JPY fell to near 147 as equities slipped, before recovering to 147.70. AUD/USD was firm, moving above .63. EUR/USD saw limited movement but held firm above 1.09. GBP/USD nudged above 1.2950. US data had little impact. February’s NFIB small business optimism index fell to 100.7 from 102.8 but January job openings were stronger than expected with a rise of 248k.  

European morning session 

European currencies were generally firmer through the European morning. EUR/USD gained half a figure to 1.09, and most of the European currencies made similar gains against the USD. However, the NOK outperformed, with EUR/NOK building on yesterday’s losses, dropping 5 figures to 11.63. EUR/CHF went the other way, gaining half a figure to 0.96 in a generally more risk positive market. 

The USD made modest gains against the JPY, rising around 30 pips to 147.60, and USD/CHF was also up 20 pips to 0.8820, but AUD and CAD made some modest gains.  

EUR gains were helped by comments from Germany's Greens Party co-leader Franziska Brantner who said in an interview with Bloomberg News that her party was ready to negotiate to reach a deal for increased state borrowing to boost defence spending and revive growth. On Monday, the EUR was held back by the Greens' refusal to back the reforms to debt rules and the 500 billion euro infrastructure fund.