Article Highlights

  • BOE MPC member Shafik: Waiting for stronger wage growth
  • WTI crude oil recovered to $36.63/barrel, Brent crude oil testing $38/barrel
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It was a relatively quiet trading day in the U.S. market, although some forex pairs still spiked here and there on risk sentiment changes. Crude oil prices bounced off their Friday lows, bringing a bit of risk appetite in the mix.

Major Events:

Oil price recovery – Crude oil recovered off its Friday lows throughout the day, as traders probably booked profits off their previous short positions. No major announcements were made, though, leaving market watchers wary that this might just be a temporary bounce before the longer-term slide resumes.

Pre-FOMC jitters – Dollar traders seem to be playing it carefully ahead of the FOMC blockbuster this week, as some analysts (including Forex Gump) have suggested that the Greenback might actually be in for a tumble even with an actual rate hike.

Major Currency Movers:

Commodity currencies – Thanks to the slight rebound in oil prices, the commodity currencies gang managed to get back on their feet. However, the Loonie is still feeling a bit shaken and worried about more crude oil declines.

AUD/USD is up 64 pips to .7247 (+0.90%), NZD/USD is up 65 pips to 6773 (+0.96%), but USD/CAD is still stuck below the 1.3750 mark (-0.14%). AUD/JPY is up 76 pips to 87.55 (+0.88%), NZD/JPY is up 74 pips to 81.83 (+0.92%), and CAD/JPY is struggling to stay above the 88.00 mark (+0.09%).

GBP – The pound was one of the weakest performers in the forex bunch today, with traders likely pricing in expectations of another downbeat jobs report.

GBP/USD is down 75 pips to 1.5143 (-0.49%), GBP/JPY is down 99 pips to 182.92 (-0.54%), GBP/AUD is down 253 pips to 2.0900 (-1.20%), GBP/NZD is down 292 pips to 2.2362 (-1.29%), and EUR/GBP is up 49 pips to .7263 (+0.68%).

Watch Out For:

  • 1:30 am GMT: RBA meeting minutes
  • 1:30 am GMT: Australian house price index for Q3 (2.1% expected, 4.7% previous)

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