Lots of indecision in the FX markets, but one of the clear themes on the day was that of selling, primarily through EUR/GBP.
Cable has been struggling through the day, with players keen to buy dips, but consistent gains in the cross rate saw the former pair hit through 1.4200, remaining under threat of a breach of Monday’s 1.4132 lows.
EUR/GBP has come up against some resistance ahead of .7800 in the meantime, but along with EUR/USD and the rest of the crosses, remains well-placed for further gains despite the prospect of further ECB accommodation this Thursday.
Soft China trade data set the negative tone in the stock markets, but after a pre NY recovery in risk appetite, Wall Street losses reflected early European sentiment. The JPY has been the major beneficiary as a result, with the USD rate now back in the mid 112.00s, and still threatening lower with the crosses following.
AUD/USD held the recent uptrend to push back up to recent highs, but has been knocked off better levels accordingly, with NZD losses a little more prominent ahead of the RBNZ meeting overnight.
A torrid session for CAD with volatile oil prices. WTI matched the early Jan highs from which we saw the heavy losses dominating early year focus, but rejection has sent USD/CAD back towards 1.3400, with more upside on the cards.