Today's edition of the Saxo Morning Call features the SaxoStrats team discussing the continuing weakness of the US dollar as commodity prices recover ground and in the wake of key US equity indices hitting all-time highs Thursday.
Article / 17 October 2016 at 21:46 GMT

US Market Wrap: FX is dull – are traders watching Netflix?

FX Trade Strategist /

  • Australia New Vehicle Sales                                                0030 GMT 
  • Australia: Reserve Bank of Australia minutes                     0030 GMT 

US Data released:

  • NY Empire State Manufacturing Index (Actual minus 6.80 vs forecast 1.0) 
  • Capacity Utilization-September (Actual 75.4% vs. forecast 75.6%) 
  • Industrial Production-September (Actual 0.1% vs. forecast 0.1%) 

There wasn’t anything to get excited about in today’s FX markets so traders didn’t. They appeared content to pare back long dollar positions in a tentative trading session.

EURUSD was a write-off. The single currency traded in a 0.0020-point range around 1.0995. USDJPY continued the slide that started in Europe and finished the day at 103.87, just off of the day's low of 103.77. GBPUSD bounced, mostly due to the general US dollar weakness.

US Federal Reserve Vice Chairman Stanley Fisher said that the Fed was close to achieving its two targets, which is news of the “Abraham Lincoln was shot” variety. He was cautious and didn’t say anything to incite or discourage rate-hike chatter.

An early-session oil price rally came to an abrupt end on a surprising and steep decline in the NY State Empire Manufacturing Index, coupled with bearish sentiment stemming from Friday’s rise in US rig counts. It was also down to profit taking in an overbought market that was very near major resistance. WTI dropped from $50.57 to $49.56 just after breakfast and then inched higher to $50.06 by the close.

US equity indices followed European indices into the red at the close. The CEO of Caterpillar (CAT: NYSE) had a metamorphosis but instead of turning into a quarter-end superstar he became retired. A botched growth plan will do that to a guy.

Netflix (NFLX: Nasdaq) shares surged in after-hours trading, rising from $97.70 to $121.28 after proving naysayers wrong and adding far more new subscribers than expected.

 Netflix proved naysayers wrong and added far more new subscribers than expected. Photo: iStock

Is the Bank of Japan taking flying lessons?  Check out Saxo Bank's Chief Economist Steen Jakobsen in: BoJ prepares for helicopter money — #SaxoStrats video

– Edited by Susan McDonald

Michael O'Neill is an FX consultant at IFXA Ltd. Follow Mike or post your comment below to
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Missed a day? Here’s what we had to say during our and our Asia session our regular European Morning Markets, From the Floor and Mid-session Europe.


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