US Market Wrap: Traders turn to US data as Vienna meetings disappoint
- China: Caixin Services PMI 0145 GMT
- ADP Employment Change (Actual 173,000 versus forecast 175,000)
- Initial Jobless Claims (Actual 267,000 versus forecast 270,000)
- EIA Crude Stocks Change (Actual -1.4 million barrels versus forecast -2.5 mln barrels)
Forex markets were rather sleepy at the dawn of trading on Thursday morning, with traders patiently awaiting the music from the market version of the Vienna Boys Choir – that is, both the European Central Bank and Opec held their meetings in the Austrian capital on Thursday. The first solo was the ECB. The ECB left rates unchanged and said that it was focused on implementing the initiatives announced earlier.
That was all EURUSD traders needed to hear and they went looking for something else to worry about. They found in the US ADP Employment and Jobless Claims data. Both releases indicated that the US job market was healthy, so EURUSD was sold, dropping from 1.1204 to just 1.1145, finishing the day near the bottom. USDJPY traded down to just ¥108.544 after the data but ran out of steam and drifted back higher.
The other voice from Vienna was Opec. Traders were hoping that the cartel would agree to some sort of production cap or freeze. But there was nothing doing.
WTI dropped to $47.97/barrel from an overnight high of $49.44/b. And just when things were starting to look grim for WTI, the Energy Information Administration announced a draw-down of 1.36 million barrels. WTI quickly scooted back above $49.00/b. USDCAD tracked the oil price swings, tick for tick.
The prospect of a strong nonfarm payrolls report on Friday didn’t spook equity traders. They bought stocks and US equity indices finished with gains for the day.
Have GBPUSD moves got you confused? Saxo Bank Technical Analyst Kim Cramer Larsson helps clear the air in: What sterling did as an SHS pattern unfolded
– Edited by Robert Ryan
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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.
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