Article / 11 May 2016 at 0:05 GMT

US Market Wrap: Rising oil breathes life into FX

FX Trade Strategist / www.Loonieviews.net
Canada
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Watchlist:

  • Australia: Home Loans                                                            0130 GMT                                                                                      
US Data released

  • Nothing of note

The US dollar had a somewhat mixed day in a fairly quiet FX session with traders preferring to stay close to home. The Aussie and the Loonie managed to squeak out gains on firmer commodity prices while the Kiwi suffered modestly ahead of today’s Financial Stability Report. EURUSD continued to trade sideways around 1.1400 while USDJPY held on to its overnight gains.

Oil traders seem to be optimistic. WTI started the day at $43.17 which was also the low and then proceeded to rally to $44.65 by the end of the day.

Traders appear unconcerned with the changing of guard in Saudi Arabia’s oil ministry or with Russia’s Rosneft’s chief, Igor Sechin suggesting that internal differences are killing Opec.

The American Petroleum Institute report after the markets closed showed a build of 3.4 million barrels in Crude stocks. WTI dropped to $44.30 in after-hours trading.

Equity traders liked the rise in oil prices and bought stocks allowing the major New York indices to post healthy gains, helped by low volumes.


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Opinion:

House price erosion as a consequence for Brexit may tip the balance in favour of the stay side, according to TradingFloor contributor, Neil Staines in: Handling Brexit and Greek debt forgiveness

Missed a day? Here’s what we had to say during our Asian session and our regular European Morning Markets, From the Floor and Mid-session Europe.

-- Edited by Adam Courtenay
 
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.

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