US Market Wrap: US dollar climbs as drama recedes
• Numerous European countries celebrate Epiphany
• China: Caixin China Services PMI 0145 GMT
US Data released
• No data of note
The US dollar followed up Monday’s rally with another strong performance, gaining against all of the G-10 currencies with the exception of the yen. EURUSD broke support at 1.0790 and now has its sights on the 1.0500. USDCAD broke above 1.4000 and tested 1.4018 before retreating. A poor Global Dairy Trade auction result had the Kiwi dollar testing its December bottom. A lack of any meaningful US data left forex traders fretting about China equity markets, rising tensions in the Middle East and what, if any, new information will be gleaned from the Federal Open Market Committee minutes on Wednesday.
US equity indices closed mixed on the day. The Nasdaq was a loser, in part due to Apple (AAPL: NASDAQ) dialing a wrong number. Bloomberg quotes the Nikkei Asian Review stating that Apple would cut production of its newest iPhones by 30%
Crude oil prices renewed their decline in New York, undermined by traders with a propensity to sell rallies and by concern that the Saudi/Iran feud would derail any hopes of production cuts in the near term. WTI dropped from $37.10/barrel and touched $35.74/b before bouncing and closing at $36.16/b.
If you are looking for things to worry about in Europe at the start of a new year, Trading Floor contributor Juhani Huopainen posted a great article: A new year dawns. a new euro crisis beckons.
– Edited by Robert Ryan
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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