Article / 30 August 2016 at 0:08 GMT

US Market Wrap: USD hangs onto Friday's gains

FX Consultant / IFXA Ltd


  • Japan: Employment Report                                             2330 GMT 
  • Japan: Retail Trade Report                                             2330 GMT 

US Data released:

  • Personal Consumption Expenditures-July (Actual 0.0% vs June 0.1%)

New York traders walked into a market with a predilection towards buying US dollars. That sentiment didn’t last very long. EURUSD bottomed out in the morning at 1.1157 and pushed toward 1.1200 until early afternoon when the rally stalled out.  

USDJPY climbed to 102.30, coinciding with the option cut and then trading was offered for the rest of the day, closing at the low of 101.87. Even Sterling got into the act. GBPUSD climbed to 1.3120 by mid-afternoon and then retreated to 1.3100 at the end of the day.

With the UK closed for a holiday, US traders were content to consolidate Friday’s gains after Janet Yellen's comments. Today’s Personal Consumption Expenditures report didn’t hurt the rate hawk cause but the low inflation component of the data, didn’t help either.

 The USD is holding its own after Yellen's upbeat speech on Friday. Photo: Flickr

US equity traders appear to be okay with the data and Yellen’s comments as the major equities closed with gains. Apple (AAPL: NASDAQ) may be in for a bad day on Tuesday. The Wall Street Journal says the European Union regulator will rule that Apple's tax deal with Ireland is illegal.

Oil prices were treading water in an uneventful session and closed the day at $46.98, pretty much unchanged on the day.

Saxo Bank's Head of FX Strategy, John Hardy thinks EURUSD could go to 1.1000.  Check out: FX Board: Greenback's gain is a loss for EUR, CHF, GBP

Michael O'Neill is an FX consultant at IFXA Ltd. Follow Mike or post your comment below to
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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.


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