FOMC Minutes Lift USD

USD Firmer Following FOMC Minutes

The US dollar has been a little firmer over the European morning on Thursday following the FOMC minutes yesterday. The minutes revealed little in the way of new information, though did show that “most” members agree that the July rate cut was a mid-cycle adjustment. Consequently, pricing for a September rate cut has reduced, leading USD higher. USD index trades 98.20 last, just off the week’s 98.34 highs.

EUR Under Pressure

EURUSD has come back under pressure today in light of the USD rebound. Data weakness in the eurozone, as well as uncertainty linked to global trade and Brexit, is keeping EUR pressured. The market is widely expecting the ECB to announce fresh easing in September. EURUSD trades 1.1080 last with price remaining capped 1.1112

GBP Remains Muted

GBPUSD remains stagnant in the block of consolidation which has formed just above the 1.20 2017 lows. Growing fears of a no-deal Brexit are keeping GBP sentiment weighted to the downside despite a continued spate of positive data. GBPUSD trades 1.2128 last with the near term bias remaining bearish.

Equities Come off

Risk assets have come back under pressure today following a solid recovery yesterday. The resurgence in USD following yesterday’s FOMC minutes has capped the upside in equities for now. SPX500 trades 2921.28. While above the 2908.55 level, focus remaining on a further grind to the upside.

JPY Rallies While Gold Falls

Safe havens have had a mixed day so far with gold down against USD, while JPY trades higher. The pullback in equities has seen safe-haven flows into JPY. On the other hand, Gold has come under pressure due to the FOMC minutes which were less dovish than expected. USDJPY trades 106.38 last with price remaining tightly wound in a block of consolidation below the 106.77 level.  XAUUSD trades 1497.73 last as the rejection from the 1522.75 level continues. While above the 1433.58 level, the focus remains on further upside.

Crude Rallies On Inventories Draw

Oil prices have been a little firmer today on the back of yesterday’s EIA report which showed a second consecutive weekly drawdown in US crude stores. The report also showed that US crude stores at the Cushing site in Oklahoma were down for a seventh consecutive week. However, upside in oil has been tempered somewhat as the report also showed US crude production surging back up to just below all-time highs. Crude trades 55.90 last, with price challenging the bearish trend line from July highs yet again.

CAD Up, AUD Down

USDCAD has come back under pressure today, despite a higher USD, as resurgent oil prices have helped boost CAD. CAD has also been boosted by better than expected CPI for July, released yesterday, which came in at 2% vs 1.7% expected. USDCAD trades 1.3289 last, with price sitting back below the 1.33 level.

AUDUSD has traded lower today. A combination of a firmer USD and lower gold prices has weighed on the Aussie. AUDUSD trades .6763 last with price fighting to stay above the .6758 level for now, though remaining vulnerable to a break lower.