Video

John J Hardy
Saxo Bank’s head of FX strategy John Hardy takes a closer look at trends and moves in today’s forex charts, including EURUSD, USDJPY, AUDUSD, and EURSEK.
Article / 14 December 2015 at 22:34 GMT

US Market Wrap: FX markets stirred not shaken pre-FOMC

FX Trade Strategist / www.Loonieviews.net
Canada
saxo
 rates
 













Watchlist:

•    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.

bond
 Pre-FOMC meeting jockeying more noise than substance - like a poorly made Bond martini. Photo: iStock

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.

Opinion

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




-- Edited by Susan McDonald




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.
3y
John Shaw John  Shaw
50 / 50 is rates get raised this week 25 basis points.
Will they go 50 basis points?
Lets say they go 25...... what is that going to do to the Loonie? 1 penny in like a shot ?
If they don't raise rates this week and oil stabilizes? Loonie gains a penny?
Welcome to the Casino.
3y
Michael O'Neill Michael O'Neill
John. I bet it is closer to 99:1. Rates are going up .25. But it will be the most timid rate hike in history and only done to restore a semblance of credibility to the Fed
3y
Hisham Boulos Hisham Boulos
mmmm I have my doubt that we will see a rate hike .. !
3y
John Shaw John  Shaw
Yeah. They are dumb to do .25. Way as well go all out for .50.
May as well be hung for stealing a sheep as opposed to a lamb as they old saying goes.

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