Posted on: 15 January 2016, by: Pepperstone Support, category: Market Review
The day saw erratic moves again equities and oil markets serving as the main drivers behind FX market price action. Risk on trades served as the theme as global equities rose, with US markets up by more than 1.5%.
USDJPY was able to trade higher back up to the 118.20ish level yet again persistent selling interest kept the pair from further advances.
EURUSD saw a rally up to 1.0940 in early London trade with a report from Market News International citing ECB sources saying the board isn’t leaning towards more accommodation. Despite this, the Dec ECB meeting suggested the opposite with the doves dominating the debate during the meeting.
BoE policy meeting was widely expected. Bank voted 8-1 to hold rates at 0.5% and 9-0 to keep its QE program in place at GBP375bn. While dovish, meeting contents were not as dovish as the market expected keeping GBPUSD supported above 1.4350.
WTI was bid up for most of the NY session. Contract expirations were noted as the main driving force behind the price action. Bloomberg reported that Iran expects a sanction lift on Thursday or Friday.
IMF spokesperson Rice confirmed that the “process is fully on track” for China to enter the SDR basket.