Plenty of choppy trade today, but standout were the losses in EUR/USD, trading through the heavy bidding zone ahead of 1.1300.
Stops through here have taken us down to a modest low of 1.1270/1 as yet, with softer EU industrial production sparking the move, though the early signs in London were that this was premeditated. ECB Weidmann backing ECB Draghi yesterday has given the EUR a softer tone, and this seems to have been enough to override the softer US retail sales and PPI numbers, though the USD/JPY recovery was temporarily halted on this release.
The CAD was also in focus today with the BoC leaving rates unchanged as expected. The growth revisions were key, and despite some early disappointment that they were not as strong as expected, a brief upturn above 1.2800 saw sellers quick to step. USD/CAD has since ticked below the 1.2746 low from Tuesday’s session, and looks primed to resume lower levels – 1.2500 now the target from here.
DoE reported a large build, but the impact on oil and CAD was minimal. AUD and NZD have been well contained through the day, coming off better levels in the .77’s and .69’s respectively, but equally well supported on the downside to suggest fresh tests higher. Australian jobs ahead keeps the former rate also ‘on hold’ for now. Stock markets in the green today to further aid support here. GBP was very much in the background today, though EUR/GBP sales gave cable a temporary bid.