Turn in Fed sentiment really gathered pace today, highlighted by heavy USD losses vs JPY and EUR

The turn in Fed sentiment was reinforced by comments from member Dudley today, adding momentum to the tide of USD losses seen across the board, though to varying degrees. Post BoJ positioning was being reversed from early London, and we eventually took out the Asia lows, but it was not until the loss of 119.00 that the stop loss selling really gathered momentum. Soft US ISM added to USD woes, contributing to the removal of 118.00 en route to 117.50 with the turn in US equities yet another downside force. Concurrent Fed based/risk off moves finally saw EUR/USD taking out 1.1000, with stop loss buying extending through 1.1075. The crosses were notably quiet given market drivers. That AUD gains vs the USD were contained later in the day highlighted the impact on stocks. M&A news (Lowe buying Canada’s Rona) gave USD/CAD the much needed push through 1.3900, but holding off 1.3825-00 support, the larger Crude build reported by the DoE saw a return through 1.3900, but this has proved temporary. WTI eventually dropped back under $30.0, so this may lend some support. The tide has certainly turned in GBP, where sweeping Cable gains took us to within 5 ticks of 1.4600. Better than f/c services PMI helped, but EU concessions the key factor in this.