Article / 30 June 2016 at 23:48 GMT

US Market Wrap: Sweet day for stocks, bitter for the pound

FX Trade Strategist /


  • Japan: CPI 2330 GMT 
  • Japan: Employment Report 2330 GMT  
  • Japan: Household Spending 2330 GMT                                                

US Data released 

  • Initial Jobless Claims (Actual 268,000 vs. forecast 267,000) 
  • Chicago PMI (Actual 56.8 vs previous 50.7)

It was a busy month's end in FX markets and the speculation of US dollar buying for month-end portfolio rebalancing requirements, proved to be bang on, at least against GBP and CAD. The impact on the remaining G10 currencies was less noticeable.

US economic data failed to inspire traders but Bank of England governor, Mark Carney did. He hinted that the risk of slowing growth could lead to cuts in interest rates as well as other measures. His words cut the legs off of Sterling and GBPUSD plunged to 1.3205 before bouncing back to 1.3322 at the close.

Equity markets had very sweet day. Equity indices closed the month with decent gains spurred on by a report that Mondelez International (MDLZ: NASDAQ) made a $107.00 bid for Hershey Co. (HSY: NYSE). Hershey wasn’t amused

Oil prices declined for most of the session aside from a spike to $49.24/barrel from $48.52/b in mid-afternoon. Those gains were reversed and WTI closed at the low of the day.

US markets will make an early start to the July 4 long weekend holiday and Canada is closed for Canada Day on Friday

Bank of England governor Mark Carney laid the ground for interest rate cuts,
saying the UK economy was already showing signs of strain. Photo: Flickr


If you think that policy makers are in denial about Brexit, read Saxo Bank Chief Economist and CIO, Steen Jakobsen's: Steen's Chronicle: The policymakers comical Ali strategy

TradingFloor contributor, Nadia Kazakova has provided terrific insight into the Russia/Turkey deal in: Why there's more to the Russia-Turkey deal than meets the eye

-- 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.
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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