Sterling has been blasted lower after BoE governor Carney cast doubt on a previously pretty-much-expected UK May rate hike. The EU's rejection of Britain's latest Brexit-Irish border plan only served to deepen the rot.
Article / 15 August 2016 at 22:56 GMT

US Market Wrap: Who let the dog days out?

FX Trade Strategist /


  • Australia: RBA meeting minutes  0130 GMT 

US data released

  • NAHB Housing Market Index (Actual 60, vs forecast 60) 

If slow and steady wins the race, FX markets are gold medal contenders. New York traders inherited a disinterested FX market when they started their day. EURUSD climbed from 1.1160 and peaked just above 1.1200 at lunch and then flat-lined for the rest of the day. GBPUSD dipped below 1.2900 early and stayed below for the rest of the session. USDJPY recouped losses incurred in Europe and closed at the high of the New York session.

Higher commodity prices helped the Aussie and the loonie squeak out some gains while the kiwi went nowhere.

Just as a rising tide lifts all boats, rising oil prices lifted all US equity indices. All three major US indices closed at new record highs in a light volume day.

Oil bears continue to get squeezed. Oil prices extended gains again today. WTI rose from $44.40 to $45.92 on hopes that Saudi Arabia will engineer a price support agreement in Algiers.

 Oil prices lifted again giving oil bears a squeeze. Photo: iStock


For a nice summary of the Commitment of Traders report, read, Saxo Bank Head of Commodity Strategy, Ole Hansen's article: COT: Dollar longs reduced with JPY and EUR in demand.

– Edited by Gayle Bryant

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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