Article / 28 June 2016 at 22:56 GMT

US Market Wrap: See-saw trading leaves dollar bid

FX Trade Strategist /

  • Japan: Retail Trade                                                     1950  GMT

US data released :

  • PCE: (Q1 Actual 0.2% vs. forecast 0.2%, Core Actual 2.0% vs. forecast 2.1% q/q) 
  • S&P/Case Shiller Home Price Indices-April (Actual 5.4% vs. forecast 5.4%, y/y) 
  • Consumer Confidence-June (Actual 98 vs. forecast 93.3) 
  • API Crude Stocks Change (Actual -3.86 m/b vs. previous -5.22 m/b) 

The end-of-day news of a terrorist attack at Turkey's Istanbul airport has likely put a halt to the risk-seeking mode that was evident today in Europe and New York.

Sterling rode a roller-coaster. It started the day at 1.3292, climbed to 1.3417 and dropped back to 1.3273 by lunch time. After that it traded quietly until it shed a big figure at the end of the day. EURUSD declined all morning, rallied in the afternoon and moved lower at the end of the day. The commodity currency bloc see-sawed during the session only to close near where it started.

European Central Bank President Mario Draghi, in a speech in Portugal, appeared to be calling for a closer alignment of policies with its peers, which some see as an admission that the ECB can control inflation on its own.

Oil prices were offered to start the day but turned bid soon after. WTI rallied from a low of $45.82/b to $48.08 as Asia started Wednesday. The decline in the API crude data helped the end-of-day move.

There was risk contagion in equity markets again today, but this time it was risk-seeking. The upbeat tone evident in Europe translated into very healthy gains in US equities. However, at the end of the day, Nike (NKE: NYSE) shares dropped when quarterly sales missed forecasts. Volkswagen is shelling out $603 million to settle consumer complaints in many US states. Perhaps the consumers will use their settlement money (if they get anything) and buy Nike products.
 Sterling rode a roller-coaster throughout the trading day. Photo: iStock


The UK's political quagmire is described in detail by TradingFloor contributor Stephen Pope in: European disunion and an untied Kingdom.

– Edited by Gayle Bryant

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 Asian session and 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