Article / 23 May 2016 at 23:37 GMT

US Market Wrap: USDJPY sinks as BoJ expected to blink

FX Trade Strategist /


Nothing of note
US Data released

Markit Manufacturing PMI (Actual 50.5 vs. forecast 51.0): New York took their cue from Europe and Asia and beat up on USDJPY in a continuation of the overnight moves. The prospect of imminent Bank of Japan intervention diminished with the increase in the US administration’s annoyance of Japan’s currency management practices. How low will USDJPY go before the BoJ thumbs its nose at the US?

EURUSD and GBPUSD traded choppily within fairly narrow ranges in a low volume session aggravated by the Canadian Victoria Day holiday. Today’s Fed speakers, New York Fed’s James Bullard and San Francisco Fed’s John Williams sang the same hawkish tune which helped to keep the June/July Federal Open Market Committee meetings in focus.

WTI oil prices were very choppy and managed to recoup all the European and early New York losses by the end of the day. WTI started the day on the back foot dropping from $47.88/barrel to $47.40/b around breakfast.

It rallied, dropped and rallied again and closed at $48.10/b. US equity markets bounced around in light volumes and closed slightly in the red.

Bank of Japan governor Haruhiko Kurodo: No powder in his gun yet... Photo: Flickr


A great way to get the trading week going is by checking out Saxo Bank’s Head of FX Strategy, John Hardy’s, FX Board: USD pushing hard against risky currencies

-- 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 Asian session and our regular European Morning Markets, From the Floor and Mid-session Europe. 


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