North American Summary and Highlights 3 Mar
Overview - The USD was firmer on Middle East risks but came off its highs as equities came off early lows.
European and North American sessions
Focus remained on the Middle East, with the USD rising in Europe and remaining firmer in North America, though coming off its highs. Equities opened weak but saw a partial recovery as the North American session progressed, assisted by a Trump promise to escort shipping through the Strait of Hormuz. There was no significant data but Fed’s Williams saw scope for easing if inflation fell as he expected.
USD/JPY peaked just below 158 after rising from 157.15 before correcting to near 157.60. EUR/USD slipped to a low of 1.1530 from 1.1670 before recovering to 1.1620. EUR/GBP slipped below .87 and EUR/CHF fell to .9080 from .9120. UK Chancellor Reeves’ spring statement brought few surprises. USD/CAD largely revered a bounce to 1.3750 from near 1.3650 while AUD/USD, after falling to .6950 from .71, recovered to around .7050.