A very mixed session, with the EUR proving resilient again a day ahead of the ECB. Oil on the rise again after DoE report, pushing CAD higher.
Plenty of mixed flow today, but with the focus on the ECB on Thursday, the EUR has seen plenty of action. Some decent flow seen in EUR/JPY, which was driven down to lows just shy of 123.00, with the move dragging USD/JPY down to the low 112.00s, where 112.14 support managed to contain the move. EUR/JPY then rallied hard, and late in the day recorded a 1.5 JPY rally. USD/JPY followed, despite a heavy drop in the USD index at the time, pushing back above 113.00. EUR/USD was back above 1.1000 in the process, though early signs in the market suggested a move to fresh weekly lows with a view to settling mid range – 1.0800-1.1055 the limits seen. The upper end of this now under threat again. Cable was also dragged higher, back into the mid 1.4200s, having survived a test of the Tuesday lows around 1.4170/72. EUR/GBP again resisting a sub .7700 move, adding to the resilient tone here. UK manufacturing/industrial production mixed. AUD/USD took out .7500, but with stock markets failing to hold onto modest gains, we were back under the figure late on in the day. DoE showed a smaller build than Tuesday’s API, giving oil a fresh bid. This turned USD/CAD back towards the 1.3300 level, with positive BoC rhetoric (rates unchanged) also adding pressure here.