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John J Hardy
How will US president Donald Trump’s plans to repeal healthcare legislation affect the markets in the coming week? Saxo Bank’s head of FX strategy John Hardy explains.
Article / 08 September 2016 at 22:46 GMT

US Market Wrap: Dollar rises and oil soars

FX Trade Strategist / www.Loonieviews.net
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Watchlist

  • China: Consumer Price Index  0130 GMT 
US data released 

  • Jobless Claims (Actual 258,000 vs. forecast 265,000) 
  • EIA Crude Oil Stocks change (Actual down 14.51 million barrels vs. forecast 0.225 m/b) 

The European Central Bank policy meeting and press conference had the FX market’s attention at the start of the day. The news that the ECB left rates and policy unchanged gave EURUSD at short-lived boost. ECB President Mario Draghi was not all that dovish in his press conference and EURUSD promptly erased almost all of the overnight gains.

USDJPY rallied near the end of the European day, triggering stops on the break of 102.00 and climbed to 102.59. 

The US Jobless Claims report was stronger than expected helping fuel US dollar gains and providing a little support for September rate hike hawks.

The EIA Crude stocks report of a huge 14.51-million-barrel decline in inventories for the week propelled WTI to $47.70 from $45.70. The EIA caution that inventories were at historically high levels for this time of year, was ignored.

The rising dollar and disappointment in Apple (APPL: NASDAQ) helped push US equity indices into a losing session for the day.

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 ECB President Mario Draghi was not all overly dovish in his press conference and
EURUSD erased almost all of the overnight gains. Photo: iStock

Opinion

For a great review of the ECB decision, read Saxo Bank Head of FX Strategy, John Hardy's article: EURUSD struggling to hold 1.13 handle after Draghi speaks.

– Edited by Gayle Bryant

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.

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