23 August 2016 at 23:35 GMT
US Data released:
- New Home Sales Change (Actual 12.4% vs. forecast -2.0%)
- Markit Manufacturing PMI (Actual 52.1 vs. forecast 52.2
- API Crude Stocks Change (Actual 4.464 m/b vs. previous week -1.0 m/b)
FX markets spent another day bobbing and weaving. The 12.4% jump in New Home Sales provided a little support to the US dollar which squeaked out gains against all the G10 currencies except for Sterling. USDCAD was unchanged on the day.
GBPUSD shuffled around 1.3200 the entire day while EURUSD rejected a morning attempt to move higher and drifted lower into the close. USDJPY tried and failed to go below 100.00 but the upside was capped at 100.25.
It was a gusher of a day for oil. WTI spiked from $46.56 to $48.26 on a report that Iran was planning to attend the Opec meetings. Traders jumped to the conclusion that with Iran in attendance, the possibility of a price support agreement was likely.
The end of day American Petroleum Institute Weekly Crude Stocks change support burst that balloon. WTI dropped from $48.17 to $47.54 on news of a 4.464-million-barrel increase in inventories.
US equity traders don’t appear concerned about a September rate increase. All three major indices posted gains albeit in a light volume session.
All roads lead to....Janet Yellen's speech this week is the only show in town. Photo: iStock
Michael O'Neill is an FX consultant at IFXA Ltd. Follow Mike or post your comment below to
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