US Market Wrap: FX markets stirred not shaken pre-FOMC
• Australia: House Price Index 0030 GMT
• Australia: RBA meeting minutes 0030 GMT
US Data released
• Nothing of note
Today’s New York FX market was stirred, but not shaken, just like the poorly made martini for James Bond, which turned him into a Heineken drinker three years ago. EURUSD started the day with a bid. It attempted to test resistance at 1.1050, failed, then retreated but closed the day well above the opening level. The US dollar closed the day mixed; modestly higher versus Europe, flat against Japan and down against the commodity currency bloc as pre-FOMC meeting jockeying continues.
Oil prices had another roller-coaster ride. New Yorkers followed the European lead and sold WTI in the very early going but suddenly changed tack and started buying. WTI rose from $34.53 to a high of $36.70 before closing at $36.23 a barrel. There wasn’t any particular reason for the intraday rally, which suggests that it was just a bout of profit taking.
US equity indices managed to squeak out some gains although the move also seemed more noise than substance. The junk bond sell-off continued on Monday, which shouldn’t be much of a surprise to anyone. The product is called junk for a reason.
The pace of Federal Reserve rate hikes is what is important, according to Saxo Bank’s Ben Ridgeway, in his article: FOMC looms large? Expect the expected
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.
Missed a day? Here’s what we had to say during our Asian session, our regular European Morning Markets, From the Floor analyses and Mid-session Europe.