Daily FX Wrap: More volatile EUR trading over the ECB press conference, but nothing to justify the ramp higher this time around. Cable dents 1.4400+. AUD and CAD reined in.
Once again, we saw an ECB press conference producing some volatile trade in the EUR, but there was no discernible driver of the spot ramp up to 1.1400, which drove the USD index to just below levels seen over Tuesday and Wednesday. Stop triggering looks to have been behind this, as the reversal then resulted in the pair setting new lows on the day. Into the London close, the USD is at the session highs again, with commodities looking a little softer to put pressure on AUD and CAD; NZD having lagged ahead of this. June WTI has not quite made $45.0 yet, but USD/CAD is threatening a stronger move through 1.2700, though yesterday’s highs intact for now. AUD/USD set another fresh 10 month high, but marginally so with .7850 offers still very much containing for now. Lows on the downside ahead of .7750 as yet. A busy one for GBP, with cable sold into the UK retail sales release, which duly came in much weaker than expected. This was tempered to some degree by the lower PSNB, and after a very brief test under 1.4300, the sharp USD sell off took out some of the offers from 1.4400 – 1.4439 was the high print. Spot and cross/JPY gains towards have been dented on a wobble in equities – huge SunEdison and VW provisions/liabilities – but USD/JPY finding support well ahead of 109.00, with the BoJ meeting next week suggesting some more accommodative action to prompt JPY put buying in the options market. Mixed trade in the SEK after the Riksbank increased asset buying by Sek 45bln, with initial disappointment pulling the currency off session lows.