11 August 2016 at 22:52 GMT
- Japan: Foreign Investment 2350 GMT
US Data released:
- Jobless Claims: (Actual 266,000 vs. forecast 265,000
- Import Price Index-Jul (Actual 0.1% vs. forecast -0.3%)
- Export Price Index-July (Actual 0.2% vs. forecast 0.0%)
The US dollar finished higher on the day on Thursday against the G10 currencies, except the Canadian dollar. EURUSD opened up with a slight bidthat turned to offered by mid-morning and the single-currency declined until the close. USDJPY shrugged off early morning weakness and rallied, while GBPUSD, which dropped below 1.3000 in Europe, failed to reclaim that level.
The US dollar strength was attributed to positioning ahead of Friday’s data dump which includes key releases from China, the Eurozone and the US.
Crude oil prices took a turn for the better. WTI opened near $41.37/barrel and climbed steadily throughout the day, closing at $3.37/b. The oil rally turned the Canadian dollar into the best performing currency for the session.
Traders apparently believed comments attributed to the Saudi oil minister, which claimed that “Saudi Arabia will do its part to rebalance the market”. He must have forgotten the comments made by his boss in April, when Crown Price Mohammad bin Salman said any deal needs to include Iran.
Traders are upbeat about hopes that Saudi Arabia will take steps to curb oversupply at Opec talks next month, but any deal that excludes Iran is likely to fail. Photo: iStock
There is a lot of data from China due out on Friday. For a refresher about the current impact of events that took place in August last year, have a look at the following article by Trading Floor managing editor Martin O'Rourke: One year after the Chinese devaluation
– Edited by Robert Ryan
For more on forex, click here.
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.