11 July 2016 at 22:58 GMT
- Australia: NAB Business Confidence Index 2130 GMT
US Data released
Sterling was the stand out performer of the day. GBPUSD
opened at 1.2866 and soared to the day's high of 1.3017 within the first hour of trading when Conservative leadership candidate, Andrea Leasom quit the race. (See Saxo on Brexit: Leadsom pullout underpins UK crisis
) Theresa May is now the new leader of the ruling Conservatives in the UK, and Prime Minister-in-waiting, by default,
followed GBPUSD higher but the magnitude of the move was much narrower.
prices came under renewed pressure and WTI hit a two-month low at $42.42/barrel as traders became concerned that perhaps the oil supply imbalance was still an issue. A Reuters analyst
blames hedge funds liquidating bullish bets for part of the WTI weakness. The WTI drop also turned USDCAD
Kansas City Fed President, Esther George, said that interest rates were too low
in a speech that she gave in New Mexico on Thursday. George added that “moving rates to a more-normal level and at a gradual pace is necessary to minimize distortions in the economy that can build over many years when rates are held so low". Her remarks didn’t hurt equity markets.
The S&P 500
index made another new high. The prospect of additional easing by major central banks, a Federal Reserve
that is in park, and a strong employment report that implies additional economic growth contributed to the equity demand.
Crude oil prices are under renewed pressure and WTI has hit a two-month low on trader concerns over a possible oil supply imbalance. Photo: iStock
– Edited by Robert Ryan
Michael O'Neill is an FX consultant at IFXA Ltd. Follow Mike or post your comment below to
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