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.
