Another relatively choppy session in FX, but one clearly favouring the EUR early on in the European session. Source reports that the ECB were happy to wait and see how the latest accommodative measures will filter through the Eurozone pushed all rates higher, though the lead spot rate held off the recent 1.0968 highs.
The ECB minutes later suggested a more flexible tone, seeing gains in all pairs pared. EUR/GBP eventually pushed through .7600, but with limited follow through, and after the BoE minutes revealed an ongoing 8-1 vote split, this led the initial pullback back into the mid .7500’s.
Cable held Monday’s 1.4350 low – just. USD/JPY looks to be weathering changing risk sentiment a little better, but the key commodity pairs all sunk to fresh long term lows. AUD held .6900 though, while 1.4400 barriers were tested in USD/CAD as WTI threatened $30.0 again – but held. Fed Bullard comments on the Oil impact on inflation were ignored. NOK gains continue – tipping .9700 vs the SEK.