Oil crushed, sending commodity-tied...........>

FOREX: Oil crushed, sending commodity-tied currencies spinning

-Soaring energy imports, record high domestic production and poor refining rates

in the US knocked oil markets lower Wednesday. The weekly DoE inventory report

registered a far larger build in stocks, pressuring WTI and Brent crude futures

by as much as 5%. This took the wind out of the sails of commodity-tied FX and

as such, CAD, NOK and RUB are among the poorest performers Wednesday.

-This contrasted with better risk appetite stemming from comments suggesting a

US-Mexico deal could be struck as soon as Thursday, thereby avoiding Trump's 5%

tariff threat entirely (the tariffs would be imposed from June 10th). This

helped MXN higher, outperforming the broader LatAm space.

-The USD had a mixed session, sent spinning by a woeful ADP employment change

reading, before recouping the losses as ISM non-manufacturing index edged above

expectations. This increases the importance of Friday's NFP, particularly as

Fed's Brainard stated she was "watching payrolls closely".

-The ECB rate decision takes focus Thursday, where the bank are expected to

divulge further details on their new TLTRO programme.