US Market Wrap: Same old story as USD sinks and oil rallies
- Japan: Foreign Investment, Machinery Orders 2350 GMT
- Job Opening and Labor Turnover Survey (JOLTS) for April. (Actual 5.788 v forecast 5.672)
- EIA Crude Oil Stocks change (Actual -3.226 m/b v forecast -2.740 m/b)
By Michael O'Neill
It wasn’t a particularly good day for the US dollar. In fact, it was downright nasty. The only major currency that it gained against was sterling and that was all due to Brexit jockeying.
EURUSD opened up with a bit of a bid tone and it climbed steadily until mid-morning when it touched 1.1409.
From there, it slid back to 1.1390 where it ended the day. Perhaps Janet Yellen’s reportedly favourite labour indicator had something to do with it. While JOLTS showed a record number of job openings there was an inexplicable decline in hiring.
The commodity currency bloc had a good day, led by Kiwi. NZDUSD drifted higher throughout the session and then spiked to 0.7114 from 0.7018 when the Reserve Bank of New Zealand left rates unchanged. That was the preferred outcome.
The big story of the day was the rally in crude oil. West Texas Intermediate touched $51.31/barrel by mid-morning and retreated after a somewhat mixed EIA report.
Initially traders took a tiny increase in US production as more important than the larger than expected drawdown. Prices spiked to $51.61/b near the close.
Have you ever asked yourself what you would do if you were president? Saxo Bank’s Chief Economist Steen Jakobsen did just that in: Steen's Chronicle: 'If I were president...'
-- 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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