Ole Hansen
Saxo Bank’s head of commodity strategy Ole Hansen considers the implications of pledges by Saudi Arabia and Russia to raise oil production despite the likes of Iran and Venezuela not backing the move.
Article / 04 August 2016 at 22:42 GMT

US Market Wrap: Mark Carney clocks GBPUSD

FX Trade Strategist /
saxo Watchlist: 

  • Australia: AIG Performance of Construction Index                2330 GMT 

US Data released:

  • Challenger Job Cuts -July (Actual 45,340 versus previous month 38,530) 
  • Jobless Claims (Actual 269,000 vs. forecast 265,000) 
  • Factory Orders -June (Actual -1.5% vs. forecast 1.8%) 

“Super Thursday” lived up to its advance billing, at least for Sterling traders. The “more-aggressive-than-anticipated Bank of England stimulus announcements trashed GBPUSD. Cable dropped from 1.3339 to just 1.3098 in minutes.

Elsewhere, the balance of the G10 nation currencies edged higher against the greenback. The decline of the USDJPY stalled at ¥101.00 on more than just a passing concern about Friday’s nonfarm payrolls number. Nonfarm payrolls concern was the theme among the G10 currencies, helping to trap EURUSD in a narrow 1.1115-1.1145 band.

WTI oil opened up at what proved to be the low of the day ($40.50/barrel), with the move being attributed to “short-covering". The strength of the rally is questionable, as it is hard to believe that all the oversupply concerns raised at the beginning of the week have been taken care of.

US equity indices were flat on the day with all eyes on tomorrow's nonfarm payrolls release. The forecast is for a gain of 180,000 and a rise in hourly earnings to 0.2%


 While crude prices have gained some ground, the strength of the rally is questionable given lingering oversupply concerns. Photo: iStock


The Bank of England may have been the story today but Turkey shouldn't be too far from your mind. Check out this article by Trading Floor Editor, Clemens Bomsdorf: This is what data say amid the Turkish turmoil

Michael O'Neill is an FX consultant at IFXA Ltd. Follow Mike or post your comment below to
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