18 August 2016 at 23:38 GMT
US Data released:
- Philadelphia Fed Manufacturing survey (Actual 2.0 vs forecast 2.0)
- Initial Jobless Claims (Actual262,000 vs. forecast 265,000)
New York traders sold EURUSD at the open but quickly came to their senses and bought the single currency, driving it to 1.1370 from 1.1305.
A similar move occurred in USDJPY. Traders rejected an early move towards 100.50 and drove it below 100.00 to a low of 99.85 where it spent most of the afternoon. Sterling managed to hand on to all of it’s European session gains and GBPUSD closed at 1.3160.
He said in a speech; "We're at full employment, and inflation is well within sight of, and on track to reach, our target," he said. "Under these conditions, it makes sense for the Fed to gradually move interest rates toward more normal levels."
Oil traders couldn’t get enough oil. WTI started the day in New York at $46.85/barrel and climbed steadily to $46.32/b. The weak dollar and doveish FOMC expectations fueled the move.
Traders ignored comments by Nigeria’s oil minister stating that “production cuts are unlikely” to be announced at the Algiers meeting in September.
US equity indices were flat on the day.
Post the FOMC minutes, traders were keen on the EUR overnight, driving it higher. Photo: Flickr
-- 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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