Article / 13 September 2016 at 23:29 GMT

US Market Wrap: The Fed Witch Project

FX Consultant / IFXA Ltd


  • Australia: Westpac Consumer Confidence-September                           0030 GMT 

US Data released:

  • Nothing of note

The Blair Witch Project was a 1999 horror film about three students vanishing in a Maryland Forest. The Fed Witch Project is the story about today’s FX markets where Federal Reserve speakers have gone missing due to the blackout ahead of the Federal Open Market Committee meeting. Both are pretty scary.

The US dollar is ending the New York session with a bid. EURUSD's attempt to push above 1.1260 failed miserably and the single currency dropped back to 1.1203 in a choppy New York session.

That move coincided with USDJPY's rally to 102.75 from 102.05 due to a story in Japan's Nikkei. The story suggested that the Bank of Japan is considering deeper cuts to Japanese interest rates.

Making matter’s worse, an International Energy Agency report arrived, downgrading 2016 and 2017 oil demand and crushing commodity currencies.

Oil prices were erratic. WTI trade within a $44.78-$45.75 band as the IEA report suggests that oil production will continue to expand in the face of slumping demand.

The oil story was all US equity traders needed to hear. They bailed out of stocks, closed in the red and essentially erased yesterday's gains.


Do American politics make you dizzy?  Check out Trading Floor Managing Editor, Martin O'Rourke's article: Advantage Trump, but this isn't over

 No way out: Forex traders don't seem to know the wood from the trees right now. Photo: iStock

-- Edited by Adam Courtenay

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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