Today's edition of the Saxo Morning Call features the SaxoStrats team discussing the continuing weakness of the US dollar as commodity prices recover ground and in the wake of key US equity indices hitting all-time highs Thursday.
Article / 22 December 2015 at 23:29 GMT

US Market Wrap: US GDP fails to stem dollar's slide

FX Trade Strategist /


  • Nothing ahead

US Data released

  • Q3 GDP (Actual 2.0% vs. forecast 1.9%, annualised)
  • Q3 Core PCE (Actual 1.4% vs. Forecast 1.3%)
  • Existing Home Sales change (Actual -10.5% vs. forecast 0.0%)

This morning's US Q3 GDP data failed to have any noticeable impact on FX markets.  Instead, traders stuck to yesterday’s theme of selling dollars. That shouldn’t really be much of a surprise.  Long dollar positions are still plentiful and there is nothing on the horizon that suggests a return to US dollar buying any time soon. GBPUSD defied the trend and was sold, triggering stops on the break of 1.4860.

Oil prices bounced in what what was likely a bit of profit-taking after touching 11-
year lows yesterday. As bounces go, it wasn’t much of one.  The WTI rally from $35.66/barrel petered out at $37.17/b and prices dropped back down to close at $36.18/b.

 Rising in value? Hardly. The oil price rise looked like no more than a blip. Photo: iStock

The bounce in oil prices gave equity traders an excuse to buy, and buy they did. Trading volumes were light, stocks moved higher and all the US indices closed in the green.

Opinion: Saxo Bank’s John Hardy provides some insight on Cable’s drop in : FX Board: Sterling slides as euro, yen surge

-- Edited by Adam Courtenay

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 regular European Morning Markets


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

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