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 / 26 September 2016 at 22:30 GMT

US Market Wrap: No debate about it – USD drops

FX Trade Strategist /


  • Japan: Bank of Japan monetary policy meeting minutes 2350 GMT 

US Data released:

  • New Home Sales change August (Actual -7.6% vs. forecast -8.6%, m/m) 

The debate started early today. No, not the Clinton/Trump chin-wag but the debate on the direction of the US dollar for the day. The bears won.

EURUSD edged higher, perhaps supported modestly by Mario Draghi’s comments that lower interest rates are a symptom of slow growth, European Central Bank member Benoît Coeuré supported the view when he said that negative interest rates are not the most important tool for the central bank.  

USDJPY declined steadily throughout the day while GBPUSD bounced from the overnight low. The Canadian dollar was the only currency to lose ground to the US dollar despite a rebound in oil prices, on a continuation of the Friday move and in part because some believe that the Bank of Canada could cut rates. There is also an element of fear of a Trump victory resulting in the loss of Nafta undermining the Loonie.

Oil prices climbed steadily until mid-afternoon when profit-taking took WTI crude down from $46.15 to $45.52. The Algiers meeting is still going strong and there were not any fresh sound bites.

US equity markets sold off in part because of contagion from the plunging Deutsche Bank shares in Europe. The Trump/Clinton debate was anther excuse to take profits.

The Trump/Clinton debate was anther excuse to take profits in US equity markets. Photo: iStock


Saxo Bank's Product Manager for Futures and Options, Georgio Stoev, suggests a put strategy to hedge an equity portfolio in: Volatility Update: Vix back in the grind

– 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 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
- 沪ICP备13028953号-1

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