Daily FX wrap: USD hit late in the day after some early gains against the EUR. Cable rips through 1.4300 again with commodity currencies post fresh highs also.
After a relatively quiet session where we saw EUR/USD giving back some gains in AM London, we could sense some indecision in the rest of the majors, though USD/JPY made a decent recovery from yesterday’s sub 113.00 levels but failed to test 114.00. Later in the day, the USD was then hit hard against a range of currencies, with the lead EUR rate recouping a large chunk of the day’s losses, but AUD, CAD and GBP all making fresh recent gains vs the greenback; to .7580, through 1.3200 and up to 1.4382 respectively. Little to drive the move, with USD/JPY hurt by the broader USD move despite a strong showing in early Wall Street.
Early flow in Europe saw EUR/GBP hit down into the mid .7700’s, with headline UK trade better than expected. However, Canadian jobs were weaker than expected, but this only had a temporary negative on CAD.
Looking into next week, plenty more central bank risk to contend with. The FOMC headlines the schedule, but the week starts off with the BoJ on Monday, and this will be crucial for USD/JPY, which is struggling for direction inside 112.00-115.00. Both the SNB and BoE convene on Thursday, though markets will be dealing with the aftermath of the Fed decision in the evening before. No move expected, but the accompanying statement and dot-plot will be keenly focused upon.