Wednesday Markets Summary


The AUD occupies the top of the Forex Majors leader-board, ripping 100 pips on the RBA’s lack of easing bias, after yesterday’s decision to leave interest rates at 1.75%. The central bank’s threw its typical ‘wait and see’ approach that we have come to expect. Wait for Brexit dust to settle, wait for the Fed hike to probably drop the AUD, and just wait and wait for more on the low inflation readings that forced their hand to cut at the last meeting.

Speaking of Brexit, Sterling markets are hysterical right now. While official prices and expectations still massively skewed toward Bremain, agenda driven newspaper polls are all over the place and Cable is reacting to every headline as liquidity thins out into the vote. Those traders at their screens yesterday during Asia were given this gift:

wednesday money markets wrap gbpusd chart spike

A fat finger?? Ahh, okay…

The USD has been weak across the board following the dismal NFP reading and Yellen all but ruling out a June/July hike. This weakness has helped even the weak EUR/USD continue to tick higher. Draghi just can’t catch a trick with his stimulus program ready to be unleashed further in the coming week.

Stocks and Oil remain strong, but both heading into technical resistance. These two markets just love to buck the major crowd sentiment. If watching CNBC boffins isn’t your thing, check out the new Vantage FX Client Sentiment indicators that we have placed on the homepage for an insight into how the Vantage FX trading book is skewed.

wednesday money markets wrap vantage fx trading book

This Wednesday

JPY Current Account

JPY Final GDP q/q

CNY Trade Balance

GBP Manufacturing Production m/m

USD JOLTS Job Openings

USD Crude Oil Inventories

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This is a guest post originally appeared on Vantage FX blog. Reposted with permission.

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