In FX markets we have seen some volatility in all sessions, starting in Asia, NZD/USD fell on the lower than expected Fonterra milk price forecasts, kiwi found support at the .6694 area after dropping 76 pips overnight. This said USD/JPY stole the limelight tripping stops through 110.00 to the downside. In the EU session, initially we saw some strength go through cable with price managing to reach the 1.4738 level but as the GDP data filtered through GBP lost all its gains and now is trading below the 1.4700 handle (-47 pips). EUR/USD appreciated today but has looked to have just rejected the 1.1200 level and currently resides below around 1.1168.
Earlier in the day there was no surprise that we saw some strength go through CAD as both Brent and WTI initially traded above the USD 50.00/bbl area. However, did pull off best levels in tandem with the turnaround in oil. Despite better than expected durable goods data and initial jobless claims the DXY took a battering today mid US session, after the key support level of 95.15 was broken to the downside and extended to trade below the 95.00 level. Subsequently in all the cross USD pairs, most of the early losses, especially in NZD and JPY, were erased with the exception of GBP as Brexit concerns and GDP data subdued the currency. Following the EUR/USD rise and cable stalling EUR/GBP also benefited rising 67 pips for the day.
In Exotic currencies the Saudi riyal rose sharply and then almost instantly pared its gains as the Saudi Gov. apparently tried to curb speculation against the riyal. This came as bullish bets for the USD/SAR have increased on the forward contracts with some analysts and traders speculating that the Gov. are to remove the peg against the USD.