17 August 2016 at 22:34 GMT
- Japan: Trade Data 2350 GMT
- Japan: Foreign Investment 2350 GMT
US data released
- EIA Crude Oil Stocks Change (Actual -2.5 million barrels vs. previous week 1.055 m/b)
The Federal Open Market Committee minutes were released and depending on the analyst or news service, the Federal Reserve is patient and in no great hurry to raise rates, or as the headline in the Wall Street Journal says: “Fed minutes suggest rate rise possible as soon as next month”.
FX markets concluded that rates weren’t going anywhere anytime soon and the US dollar finished down on the day, right across the board.
The barrage of Fed speakers prior to the release of the FOMC minutes was like smoke from a wildfire; blinding, choking and disorienting. As a result, EURUSD and GBPUSD traded sideways in a narrow band while USDJPY drifted lower. Steady to higher oil prices put downward pressure on USDCAD.
Oil prices were firm. WTI climbed from $45.82 to $46.91 where it finished for the day. Traders ignored a Reuters story that Saudi Arabia may post another record for production in August.
US equities were down for most of the session but managed to close in the green after the FOMC minutes.
The FOMC minutes provided more questions than answers although US equities managed to close in the green after their release. Photo: iStock
– Edited by Gayle Bryant
Michael O'Neill is an FX consultant at IFXA Ltd. Follow Mike or post your comment below to
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