Sterling has been blasted lower after BoE governor Carney cast doubt on a previously pretty-much-expected UK May rate hike. The EU's rejection of Britain's latest Brexit-Irish border plan only served to deepen the rot.
Article / 12 July 2016 at 22:56 GMT

US Market Wrap: Just another sterling day in FX markets

FX Trade Strategist /


  • Australia: Westpac Consumer Confidence Index                     0030 GMT                                                     
US data released

  • JOLTS Job Openings (Actual 5.5mln vs previous 5.84mln) 
  • Wholesale Inventories (Actual 0.1% vs 0.2% forecast) 
New York traders bought sterling right from the start lifting GBPUSD from 1.3137 to a peak of 1.3294 before it drifted lower into the close. Traders appear happy that a large part of the UK’s political disfunction has dissipated with Theresa May’s ascension into 10 Downing Street. It didn’t hurt that USDJPY bulls were in full control, empowered by Japanese Prime Minister, Shinzo Abe’s plan for additional stimulus. EURUSD declined but the move was small.

China’s “historical” claim on the South China Sea was ruled invalid by the Permanent Court of Arbitration in The Hague. China doesn’t accept the ruling.

WTI oil prices climbed from $45.46 to $46.89. Traders ignored a rumour that the API crude stocks change report would show a build of 2.2 million barrels. They shouldn’t have. It was accurate. WTI dropped to $46.31 from $46.73 in after-hours trading.

US equity indices had another “green” day. The financial press is littered with headlines alluding to records and all time highs.

 Traders were happy the new occupant of 10 Downing Street had been confirmed. Photo: iStock


Traders in emerging market currencies should read TradingFloor contributor, Stephen Pope's article: Is it really an Indian summer?

– Edited by Gayle Bryant

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


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