Yields on core European bonds went for a slide yesterday as prices rose in response to the ECB's decision to leave its QE programme unchanged – for now at least. Elsewhere, the USD continues to make gains on its peers.
Article / 10 August 2016 at 23:01 GMT

US Market Wrap: Sterling sinks in low-volume FX session

FX Consultant / IFXA Ltd


  • Australia: Consumer Inflation Expectation 0100 GMT 

US data released

  • JOLTS Job Openings July (Actual 5.624 million vs. previous 5.51 million) 
  • EIA Crude Stocks change (Actual 1.055 m/b vs. previous 1.413 m/b) 

The US dollar bopped and weaved against the majors in a futile effort to find direction. New York FX volumes were low due to both summer holidays and a lack of top tier data. The Job Openings and Labor Turnover Survey showed that the pace of hiring has still not recovered from the 2007-09 decline, according to the Wall Street Journal.

EURUSD peaked in the very early going and then traded within a .0030-point range. USDJPY meandered within a 101.00-40 range and both currency pairs ended the day right where they started. Not so for sterling. GBPUSD peaked at the same time as EURUSD but dropped substantially more. However, it failed to test key support at 1.2960. and managed to recover above 1.3000. 

The Energy Information Administration Weekly Crude stocks change reported a build in crude inventories and a decline in gasoline inventories. Unlike last week, today traders decided that the crude build was more important than the gasoline drawdown and sold WTI. A report that Saudi Arabia set another record for oil production in July didn’t help oil price sentiment. 

WTI dropped from $43.35 to $41.46 where it ended the day. That move also took the wind out of the sails of the commodity currency bloc rally, particularly the Canadian dollar.

US equity markets were as indecisive as the FX markets and traders were content to stay close to home and watch Olympic swimming pool water turn green.

 WTI's drop from $43.35 to $41.46 took the wind out of the commodity
currency bloc rally. Photo: iStock


Day traders should take note of volume patterns says TradingFloor contributor fxtime in: Pump up the volume.

Trump's presidential qualifications may be lacking says TradingFloor's Managing Editor, Martin O"Rourke in:Trump not fit to be US president.

– Edited by Gayle Bryant

Michael O'Neill is an FX consultant at IFXA Ltd. Follow Mike or post your comment below to
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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.


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