Article / 28 July 2016 at 23:35 GMT

US Market Wrap: Forget the Fed, bring on the BoJ

FX Trade Strategist /


  • Japan: CPI, Employment, Household Spending 1930 GMT 
  • Industrial Production, Retail Trade 1950 GMT 
  • Bank of Japan Interest Rate Decision 2000 GMT  

US Data released:

  • Jobless Claims (Actual 266,000 vs. forecast 260,000)

FX traders have the attention span of a gnat. The ink was barely dry on yesterday’s Federal Open Market Committee statement before it faded from memory and traders moved on to the “next big thing”. The next big thing just happens to be the Bank of Japan interest decision due at 2000 GMT.

USDJPY drifted contentedly within a 104.65-104.90 band until the early afternoon when traders reacted to a Reuters “source” saying that the BoJ would ease. USDJPY spiked to 105.52 before settling down to 105.30 at the close.

EURUSD made another run at 1.1100 but it failed and the single currency drifted around the 1.1075 area for most of the day. GBPUSD chopped around in a 1.3120-80 band but without any real direction.

WTI crude attempted a rally in early trading but it failed miserably. WTI dropped from $42.19/barrel to $41.01/b. There wasn’t any fresh incentive for the move suggesting additional stops were triggered with the break of support at $41.65/b.

US equity indices closed flat to higher but traders got real googled eyed when Alphabet (GOOGL: Nasdaq) reported a 21% rise in Q2 revenue, y/y. The stock was up 5.9% in after hours trading.

 EURUSD made another run at 1.11 but couldn't quite get there. Photo: iStock


Have you taken a shine to gold? If so, check out  Georgio Stoev , Saxo Bank's Manager Futures and Options, trade idea: Bull call spread on gold

Michael O'Neill is an FX consultant at IFXA Ltd. Follow Mike or post your comment below to
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