12 October 2016 at 21:58 GMT
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
-- 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.