Article / 23 February 2016 at 22:24 GMT

US Market Wrap: Oil bulls not laughing, WTI sinks

FX Trade Strategist /


Australia Wage Price Index                                                  0030 GMT

US Data released

  • Case-Shiller Home Price Index (Actual 5.7% vs. forecast 5.8%, y/y in Dec.)
  • Consumer confidence (Actual 92.2 vs. forecast 97.0)

“Risk-off” was the word in FX today. The Swiss franc and the yen were the gainers while for the second day in a row, the pound Sterling led the losers lower. USDJPY consolidated its overnight moves and EURUSD just hovered around the 1.1000 area. GBPUSD headed lower on Brexit fears aided by a decline in oil prices.

Today’s US data was mixed to soft and also not much of a trading factor as the next Federal Open Market Committee meeting is too far away for the data to matter.

Oil traders weren’t laughing after Iran’s oil minister reportedly called a production freeze “laughable”. WTI gave back all of yesterday’s gains falling from $33.53/barrel early in the day to $31.63/barrel at the close. Additional comments by Saudi Oil Minister, Ali Al-Naimi, ruling out any production cuts didn’t help sentiment. Making matters worse, after the close, the American Petroleum Institute’s weekly Crude Oil Stock report showed a build-up of 7.1 million barrels and WTI prices dropped again.

US equity indices were all down on the shift to risk aversion sentiment.The major story of the day was news that the London Stock Exchange Group and Deutsche Börse AG were holding merger talks


"Brexit" is the talk of the UK, and Saxo Bank's Head of FX Strategy, John Hardy asks "Does Brexit really matter that much for sterling?


 Freeze hopes dashed ...  Iran’s oil minister reportedly called a  freeze “laughable”, and the Saudi oil minister ruled out output cuts, pushing crude prices lower.

– Edited by Robert Ryan

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 MarketsFrom the Floor and Mid-session Europe


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