North American Summary and Highlights 11 June

North American session

In a quiet North American session the USD saw some early gains which subsequently faded. GBP/USD dipped to near 1.27 before rebounding to 1.2740, while USD/JPY returned to near 157 after reaching as high as 157.40. USD/CAD peaked above 1.3790 before slipping to near 1.3750 while AUD/USD kept close to .66. EUR crept up to 1.2740 from a low of 1.2720.

The US NFIB Small Business Optimism Index saw a second straight gain, to 90.5 in May from 89.7, following three straight declines. Canadian building permits surged by 20.5% in Aril after falling by 12.3% in March. 

European morning session

EUR/GBP managed some initial gains in the European morning, benefiting from generally weaker than expected UK labour market data. Although the official average earnings data for the 3 months to April was a little stronger than expected at 5.9% y/y, the more up to date HMRC data for May saw a decline to 5.2% y/y. There was also weakness in the employment data, which showed a 140k decline in the 3 months to April, while the claimant count rose 50.4k – the most since February 2021. EUR/GBP initially gained to 0.8665 from an open near 0.8655, but fell back below opening levels by the end of the session, reaching 0.8440, just above yesterday’s lows. 

Otherwise the session was relatively quiet, but the EUR was generally soft, with EUR/USD falling back from 1.0770 to 1.0750. The JPY was weak in the early part of the morning, with USD/JPY climbing to a high of 157.40 from an open around 157.25, but fell back to 157.20 by the end of the morning. There as a mild deterioration of risk sentiment through the morning, with yield and equities both lower, so that the AUD fell back after initial gains and EUR/CHF pushed lower.