Article / 26 April 2016 at 22:36 GMT

US Market Wrap: Dollar on the defensive ahead of FOMC meeting

FX Trade Strategist /


  • New Zealand: Trade Balance                                                             2245 GMT
  • Australia: CPI                                                                                      0130 GMT
US Data released:

  • Durable Goods Orders for March (Actual 0.8% vs forecast 1.8%, ex-transport -0.2% vs forecast 0.5%)
  • Case-Shiller Home Price Index (Actual 5.4% vs forecast 5.5%)
  • Consumer Confidence-April (Actual 94.2 vs. forecast 96.0)
  • Markit Services PMI-April (Actual 52.1 vs. forecast 52.3)
  • American Petroleum Weekly Crude Oil Stocks (Actual -1.1mln barrels vs. previous 3.1mln barrels)

Forex markets were rather noisy and choppy but when all was said and done, the US dollar was just a tad worse off at the end of the day than where it was when it started. As usual there are exceptions, and those included EURUSD and AUDUSD, which ended the day flat.

USDJPY snapped a three-day downtrend and broke above ¥111, in part due to rising yields. GBPUSD poked its head above 1.4600 after this mornings weak US Durable Goods data, but drifted back to the opening level by the end of the day. Rising crude oil prices gave the Canadian dollar a lift.

The weak US data was not totally unexpected. Still it should be enough to throw cold water on hopes for a hawkish sounding Federal Open Market Committee statement on Wednesday.

Oil prices were firm all day and flirted around the $44.00/barrel level and then spiked to a high of $44.70/b after hours on news of a million barrel decline in US crude stocks as reported by API.

At the end of the day, equity traders bit into Apple (AAPL: NASDQ) and found a worm. The telecommunications and computer company's quarterly revenue declined for the first time in 10 years helping to drive shares down 5.4% in after hours trading.


Chinese data releases occasionally have a big impact on FX markets. But should you trust the numbers from Beijing? TradingFloor contributor, Pauline Loong is not impressed. Read her article Stimulus successful… but China's not moving.


AUDUSD looks to be an attractive buy on pullbacks according to TradingFloor contributor, Clive Lambert. See his trade view: Aussie dollar remains attractive on dips

 Oil prices spiked to a high of $44.70/barrel after hours on news of a 1 million barrel decline in US crude stocks. Photo: iStock

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.


The Saxo Bank Group entities each provide execution-only service and access to permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on or as a result of the use of the Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. When trading through your contracting Saxo Bank Group entity will be the counterparty to any trading entered into by you. does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of ourtrading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws. Please read our disclaimers:
- Notification on Non-Independent Invetment Research
- Full disclaimer

Check your inbox for a mail from us to fully activate your profile. No mail? Have us re-send your verification mail