Article / 14 June 2016 at 23:35 GMT

US Market Wrap: It's risky business waiting for the FOMC

FX Trade Strategist /


  • Australia: Westpac Consumer Confidence-June 0030 GMT                                                         
US Data released:

  • Retail Sales: (Actual 0.5% vs forecast 0.3%, ex autos Actual 0.4% vs. forecast 0.4%, m/m) 
  • API Weekly Crude Stocks Change (Actual 1.51 m/b vs previous week -3.56 m/b) 

It was another “risk-off” day in America. It sounds a tad worse than it really was. The big three US equity indices closed in the red, but the declines were modest, not like the FTSE100 which shed 2% at its close.

EURUSD started the session trying to recoup some of its European losses but that move failed quickly on the better-than expected Retail Sales data.

The US consumers are spending and that bodes well for the economy. Unfortunately, the data is unlikely to have any impact on tomorrow's Federal Open Market Committee meeting.

Sterling was the big loser again today. Thank Brexit fears and the UK Sun endorsing the “leave” camp for the move.

Oil prices were well behaved, content to seesaw within a $48.00-$48.65/barrel band. That changed at the end of the day with the API report showing that crude stocks gained since last week. WTI dropped from $48.34/b to $47.82/b.

 US consumers are spending, but it won't influence the FOMC...yet. Photo: iStock


When you have had your fill of Brexit, the US election waits. Check out Saxo Bank, Head of FX Strategy John Hardy's article: Beyond Brexit, it's an 'unbearable' 147 days to the US election

-- Edited by Adam Courtenay

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 and our regular European Morning Markets, From the Floor and Mid-session Europe.
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