Posted on: 03 June 2016, by: Pepperstone Support, category: Market Review
ECB President Draghi and his governing council “has to focus in implementation of measures.” Until implemented, don’t expect any major signals. Just keep an eye on Chair Yellen, the rest of Fed, China and arguably most important, the outcome of the UK referendum.
Investors have concluded that Draghi was neutral and as a result, short-covering in EURUSD could not break the early London high of 1.1220. The pair is back to testing 1.1150, with all eyes on NFP.
Regarding OPEC, there’s no deal and no talk of one either. The disappointing news came during the ECB press conference via a delegate and was shortly confirmed by Indonesia and OPEC’s new president - former head of the Nigerian National Petroleum Corp. and former acting Secretary General of OPEC (2006), Mohammed Barkindo. WTI sold off from the $49.0 area to just below $48.0 in the fallout but has fully recovered thanks to a surprisingly, positive DoE inventory report.
As to be expected, the usual followers of oil prices rose and fell accordingly. USDCAD ends the day around 1.31010. USDNOK, 8.3370. The antipodeans have not been too exciting but of note, AUD was the worst performer in G10. Down roughly -0.35% against the USD to 0.7230. NZDUSD remains around 0.6800.