North American Summary and Highlights 9 May
Overview - The GBP slipped on the BoE decision but the USD ended softer across the board after a rise in initial jobless claims.
North American session
GBP/USD slipped to 1.2450 from 1.2490 on the BoE decision, where rates were left unchanged but Deputy Governor Ramsden joined Dhingra in voting for a cut, leaving a 7-2 count, and CPI forecasts were revised lower. EUR/GBP bounced to touch .8620.
A bounce in US initial claims to 231k, the highest since August, from 209k, sent the USD lower, and USD losses continued to build through the session with no correction. EUR/USD rallied 50 pips to 1.0780 while USD/JPY fell 40 pips to 155.50. GBP/USD moved up to 1.2525, more than reversing its post-BoE dip. AUD/USD moved well above .66 while USD/CAD fell well below 1.37. Bank of Canada Governor Macklem stated that the Canadian financial system remained resilient after the BoC’s Financial Stability Report.
European morning session
The USD edged higher through the European morning, gaining a little ground against everything but GBP, with GBP/USD little changed. EUR/USD lost around 20 pips to 1.0730, while USD/JPY gained around 30 pips to 155.95. AUD and CAD held up a little better, both only losing around 10 pips.
Newswise there wasn’t a great deal of note, with the Bank of England MPC meeting awaited.