Daily FX Wrap - 30/05/2016

Daily FX Wrap - 30/05/2016

30 May 2016, 18:40
Roberto Jacobs

Daily FX Wrap - 30/05/2016

In the absence of London and NY, FX markets were predictably quiet. Asia saw some follow through in response to comments from Fed chair Yellen on Friday that a rate hike was likely ‘appropriate’ in coming months. EUR/USD lows were stretched to a few ticks below 1.1100, while AUD/USD was pressed into bids just under .7150, but failed to break last week’s lows.

We did however see USD/JPY pushing to new recent highs to 111.45, but sell orders in front of 111.50 contained the move.

GBP saw some fresh downside against the USD, breaking 1.4600 but with limited momentum, with EUR/GBP pushing higher but failing to match the .7645 highs from Friday.

Canadian data saw the current account widening, largely as expected, with raw materials and industrial product prices also falling to lend some support in the mid 1.3000’s. Commodities stable with Oil still well placed for a fresh test on $50.0, so CAD direction still in the balance from here.

Other data releases saw German CPI as expected, French GDP a touch better than forecast as was Swiss KoF leading indicators, but all to a limited effect due to holiday thinned markets.


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