Tuesday, December 16, 2014

US Session Recap: Platforms suspend trading in Ruble

The US session was again dominated by the global tensions surrounding the EM countries, Ruble and oil. Oil inventories were again higher than expected and risk-off was the theme. Many currencies other than the Yen were benefitting, such as Sterling and the Euro on risk aversion and exits. 

The Scandies and Ruble took a massive hit in European markets and US markets consolidated this while exits such as Sterling and the Euro have been changing hands in a volatile FX space of late. 

$USD/JPY bears remain in control and making fresh lows before bouncing back to meet the 117.60 resistance, finding decent offers again for the way back down and over a cent lower in the hand over to Asia.

$EUR/USD has been toying with the 1.25 handle and well supported with decent bids around the 1.2580 support as the Ruble began to stablise again from highs above 80 vs the dollar earlier and despite the Central banks efforts to offset offers in increasing interest rates yesterday to 17%. Platforms have been suspending trading in the currency as signs of stress are circulating throughout the banks.

$GBP/USD remained in consolidation mode in the US session with investors digesting the spike in the pound on the back of a shift in investors parking their money and looking for an exit away from Russia. The 1.5785 high was set o the handover to the US and we are supported on 1.5720 support and ranging to 1.5760 on the Asian handover.

The commodity currencies, such as the CAD, AUD and NZD were relatively limited in action surrounding the volatility of the price in oil and remain within familiar ranges but CAD and AUD are at critical levels, that if broken, open up further downside in the Canadian and Australian dollar. 

The NZD was mixed on the back of the Fonterra GDT Price Index climbing 2.4 percent but with volumes dropping, this was weighing back on the Kiwi after an initial run up to 0.7820 supply only to drop back on the handle and dip lower onto 0.7780 support.

Key events:

WTI lows $55.30
RUB rallied up over 5%
Platforms suspend RUB trading
US housing starts 1.028m vs 1.040m exp m/m
US Markit manufacturing PMI flash missing expectations