Oil has hit a 15-month high on the back of optimism over the Opec deal which needs to be sorted out by November 30. But, with a record long position building across the combined benchmarks, a disappointment could leave some exposed. Full report to come within the hour....
Article / 20 July 2016 at 22:10 GMT

US Market Wrap: USDJPY jumps on stimulus rumours

FX Consultant / IFXA Ltd

  • Australia: NAB Business Confidence                                   2130 GMT                                                   

US Data released :

  • EIA Crude Stocks Change (actual down 2.34 million barrels vs. previous week down 2.54m)

It was a mixed session for the US dollar in New York. Sterling and the yen added to their overnight gains, EURUSD chopped within 20 points, either side of 1.100, and the Aussie and Kiwi dipped back to yesterday’s lows. 

USDJPY got an extra boost from a report that the government will announce a $20 trillion stimulus program, which led to a test of 107.00.

It wasn’t a very good day for HSBC’s global head of foreign exchange cash trading. He was arrested at JFK airport and charged with frontrunning a client’s order. If he is convicted, every  FX trader/sales person who worked between 1980 and 2010 should be nervous. 

Today’s EIA crude oil stocks report took the sting out of yesterday’s API report. The 2.34 m/b drawdown was pretty close to what the API reported yesterday, but the build in gasoline inventories was small.

US equity indices were all in the green, helped by positive earnings results, although the gains are not all that impressive. The Dow Jones Industrial Average has risen for nine straight days.

 Today’s EIA crude oil stocks report took the sting out of yesterday’s API report. Photo: iStock


Emerging market traders should check out Saxo Bank’s Chief Economist, Steen Jakobsen’s video: How attempted Turkey coup impacts emerging markets.

-- Edited by Susan McDonald

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