Article / 18 July 2016 at 23:37 GMT

US Market Wrap: US dollar drops as risk fears fade

FX Trade Strategist /

  • Australia: RBA minutes 2130 GMT                                                   

US data released

  • NAHB Housing Market Price Index (Actual 59 vs. forecast 60)

FX traders sold US dollars across the board except for yen, in a fairly low volume New York session. The failed coup in Turkey quickly became a distraction rather than a disruptive market concern.

EURUSD started the day with a bid, rising to 1.1083 from 1.1040 but ran out of steam and traded sideways after that. USDJPY was under pressure at the start of the day but the improved risk appetite drove the currency pair from a low of 105.27 to a peak of 106.26.

For the most part, FX activity was just noise, with traders still looking for direction, wary of Brexit fall-out, new Bank of Japan stimulus, Thursday's ECB meeting and next week's Federal Open Market Committee meeting.

Renewed concern over rising supply helped push WTI prices down from the opening level of $45.92/barrel to a low of $45.22/b. There is a report of another build in oil supplies at Cushing, Oklahoma which contributed to the bearish tone.

However, bottom pickers emerged and WTI bounced slightly, to $45.45, before drifting lower into the close.

US equity indies were flat to modestly higher, supported by the better risk tone and a bump in financial shares, sparked by Bank of America (BAC: NYSE) beating earnings forecasts.

 Reports of strong supply are keeping WTI crude prices subdued. Photo: iStock


Gold bugs may be well served by watching Saxo Bank's Head of Commodity Strategy, Ole Hansen's video "The best way to play gold story-Hansen"

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 


The Saxo Bank Group entities each provide execution-only service and access to permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on or as a result of the use of the Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. When trading through your contracting Saxo Bank Group entity will be the counterparty to any trading entered into by you. does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of ourtrading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws. Please read our disclaimers:
- Notification on Non-Independent Invetment Research
- Full disclaimer
- 沪ICP备13028953号-1

Check your inbox for a mail from us to fully activate your profile. No mail? Have us re-send your verification mail