Fresh lows in WTI oil highlight a steady trading session
|After the early flow in London, it has been a pretty orderly session in FX, with the containment highlighted by fresh lows seen in WTI but USD/CAD maintaining steady levels in the mid 1.3100’s. The FOMC aftermath saw the pair rally to 1.3250, but we hit a wall off offers here, returning through 1.3200 and later printing lows just under 1.3100. Steady gains seen since, as we have in the rest of the key spot rates, though to varying degrees. This may change in the North American session ahead, as front month WTI is heading towards $41.00 as we write. EUR/USD has held up the best, still eyeing a return through 1.1100 to challenge the earlier 1.1120 highs. A significant chunk of this move will have been attributed to month end EUR/GBP buying, which has seen the cross rate touching on .8450 while Cable is now sub 1.3150, a little over a cent of the near 1.3250 highs. AUD and NZD have also come off better levels as the post FOMC USD sell off is reined in, but the former retains the .7500 handle which provided resistance at the start of the week. After stimulus talk in preceding Asian sessions, we now look to the BoJ meeting ahead as the JPY pairs now grab the focus. Many pundits are expecting to see some form of supplementary policy measures announced, but the market seems unconvinced as USD/JPY remains below 105.00 for now. In the Scandies, EUR/SEK has been edging higher to test the post Brexit highs ahead of 9.6000 – little behind it as the domestic data has been mixed, though unemployment and trade data supportive.
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