Article / 23 February 2016 at 22:24 GMT

US Market Wrap: Oil bulls not laughing, WTI sinks

FX Trade Strategist / www.Loonieviews.net
Canada
saxo
 rates
 













Watchlist:

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

Opinion

"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?

nnn

 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

Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Tradingfloor.com 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 Tradingfloor.com 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 Tradingfloor.com 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 Tradingfloor.com or as a result of the use of the Tradingfloor.com. 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 Tradingfloor.com your contracting Saxo Bank Group entity will be the counterparty to any trading entered into by you. Tradingfloor.com 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