Yields on core European bonds went for a slide yesterday as prices rose in response to the ECB's decision to leave its QE programme unchanged – for now at least. Elsewhere, the USD continues to make gains on its peers.
Article / 04 August 2016 at 22:42 GMT

US Market Wrap: Mark Carney clocks GBPUSD

FX Consultant / IFXA Ltd
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
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.


The Saxo Bank Group entities each provide execution-only service and access to permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on or as a result of the use of the Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. When trading through your contracting Saxo Bank Group entity will be the counterparty to any trading entered into by you. does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of ourtrading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws. Please read our disclaimers:
- Notification on Non-Independent Invetment Research
- Full disclaimer

Check your inbox for a mail from us to fully activate your profile. No mail? Have us re-send your verification mail