10 August 2016 at 23:01 GMT
- 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.
– 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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