US Market Wrap: Crude rally oils commodity currency gains
- Japan: Foreign Investment 2350 GMT
- Housing Price Index-March (Actual 0.7% versus forecast 0.4%)
- Markit Services PMI, Preliminary, May (Actua l51.2 versus forecast 53.1)
- EIA Crude Oil Stocks change (Actual -4.22 million barrels versus forecast -2.5 m)
Oil markets and sharemarkets had a busy day on Wednesday. But it was not that busy in FX markets. In fact, EURUSD, USDJPY and AUDUSD all closed the day where they started. The Kiwi dollar didn't end up very far away from its opening level either. Sterling had a good day, rising to 1.4730 from 1.4615. Diminished Brexit risks continued to play a role in the GBPUSD rally.
USDCAD was the big mover of the day, shedding over 0.0120 points on sharply rising oil prices and a Bank of Canada statement that stayed neutral on rates.
Crude oil traders had a wild ride. WTI climbed from $48.90/barrel to $49.45/b into the Energy Information Administration crude stocks change release. New of a 4.2 million drawdown appeared to disappoint traders and WTI plunged to just $48.64/b. That move didn’t last and WTI climbed steadily for the balance of the day and closed at the high.
Equity traders ignored the Markit services PMI data, liked the oil market rally and bought stocks. The major US equity indices closed in the green.
The Greece issue in the EU has been put to bed for the next little while, or has it? Read this article from TradingFloor contributor Stephen Pope: The Eurozone's Greek solution? More delays
– Edited by Robert Ryan
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Michael O'Neill is an FX consultant at IFXA Ltd. Follow Mike or post your comment below to engage with Saxo Bank's social trading platform.
Missed a day? Here’s what we had to say during our Asian session and our regular European Morning Markets, From the Floor and Mid-session Europe.