Markets on Wednesday: Forex Markets Start Quiet, Action in Oil
Rowan Crosby • 1 min read
I hope you all have had a nice break.
As expected forex markets have had a quiet start to the post-Christmas trading period. Many traders were away for Boxing Day, however, there was a trickling of action.
For the most part, it was the commodity currencies that had a little bit of life in them. The USD/CAD, NZD/USD and AUD/USD all had the most range. The Kiwi kept on rallying as it seems like it wants to do at the moment.
While the CAD strengthened, which hurt the USD/CAD. The Aussie just followed suit as they often do.
The big news in markets was in Crude Oil. Prices spiked as much as 3% as a report from Reuters suggested that an attack on a Libyan pipeline will cut output by as much as 100,000 barrels per day.
This spike has helped the CAD in particular and Crude has really broken out to the upside.
USD To Fall Further
The DXY continues to decline, despite tax reform going through. I’m seeing that a move to 93.00 looks a distinct possibility. The chart is starting to shape up as a descending triangle and given the lack of participants we could easily get a spike lower into that support level at 93.00.
Again this is really a matter of buy the rumour, sell the fact on tax reform.