Article / 12 October 2016 at 21:58 GMT

US Market Wrap: Oil gusher sputters

FX Trade Strategist /

  • Nothing of note 

US Data released:

  • Job Openings and Labour Turnover Survey (actual 5.443 m vs. forecast 5.724 m) 
  • API Weekly Crude Stocks Change (actual 2.7 m barrels vs previous -7.6 mb)

The release of the Federal Open Market Committee minutes from the September 20-21 meeting pretty much confirmed what the original policy statement said, which was that US interest rates may be going up, maybe. They did not reveal any fresh insight.

Consequently, the US dollar traded with a bullish bias, exactly as it had throughout the day. EURUSD, which had broken support at 1.1050 during the European session, was unable to get back above that level and closed in New York at session lows.

USDJPY triggered stops above 104.10 and climbed to 104.50 before sliding down to 104.28 in afternoon trading. General US dollar strength and US rate hike concerns contributed to the move.

Sterling stopped the bleeding today but it may just be a Band-Aid. GBPUSD chopped around in a 1.2165-1.2265 range.

Oil prices ended a tepid European rally. WTI started the day at $50.66, climbed to $51.10 before breakfast and then plunged to $49.87 by mid-morning. That’s because Opec confirmed what the IEA reported yesterday; September oil production was at its highest level in nearly eight years.

Adding insult to injury, at 12:50 pm (EDT) Market Watch reported that the weekly API Crude stocks report would show a build of 2.7m barrels when the data was released at 4:30 pm. They were right. 

US equity indices stayed fairly close to home. At the end of the day, the Wall Street Journal reported that Wells Fargo Chairman and CEO, John Stumph, would retire effective immediately, joining the 5,300 other employees who were forced out for opening phoney accounts.

 Adding insult to injury, the API Crude stocks report showed a build of 2.7m barrels. Photo: iStock


TradingFloor contributor Stephen Pope has written a "must read" article for all Sterling traders titled "Sterling slides as the UK rides the 'J-curve"

After reading the above article, check out TradingFloor contributor "fxtime's  "The real odds of success in any game of chance"

-- 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 and our Asia session 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