22/6 FOREX on the NY close
FX on NY Close: an ugly day on Wall Street seemed to inflict the most damage on commodity currencies in FX-land, as the World Bank’s pessimistic world growth projections and a resurgent greenback also weighed. Momentum faded a bit later in the day as perhaps as the market is unwilling to make too decisive a move ahead of this Wednesday’s important FOMC meeting.
GBP’s torrid rally vs. the Euro was finally halted, perhaps as banking stocks have come under heavy fire today.
EURGBP posted a bullish reversal in the daily candlesticks. Scandies were flushed down the toilet on emerging market weakness and risk aversion, with NOK one of the weakest of all the G-10 in today’s trading – perhaps on very weak oil market? We are longer term NOK bulls…. The USD looks like it may be on the verge of explosive upside – let’s see if the FOMC meeting encourages or rejects that appearance…this could be a very interesting week for FX. Next Update: pre-European FX Market Update.
John Hardy, Consulting FX Strategist, Saxo Bank