The USD lost out after another day of selling against the commodity currencies, led by CAD which has been boosted through 1.2700 as front month WTI pushes through $42.0. Production factors in Kuwait and Russia have tempered some of the disappointment from Doha, though the broader USD selling theme suggests 1.2600 is now the target lower down. AUD/USD has pushed through .7800 in the meantime, with some seeing the RBA lack of jawboning as a green light for higher levels, but we heard some notable selling seen at the highs today, with gains capped just above .7815. NZD/USD tipped .7050, but with the help of the GDT auction coming in better than futures prices had suggested, but much of today’s gains were achieved ahead of this.
Elsewhere, Cable extended gains through last week’s highs, but as expected, has run into some notable resistance through 1.4400. BoE gov speaking late in the day offered little on the rate outlook. EUR/USD gains extended through to 1.1380/82, but ECB on Thursday sees caution at these levels. For USD/JPY, it was a mixed session, but with stocks in positive mood, we sense a wait for the turn in USD sentiment (housing starts/building permits came in weaker today) will be actively followed up here, with signs of intent on a 110.00 retest. Option players have been buyers of post BoJ (28 Apr) JPY puts to suggest the central bank will add to accommodative policy next week.