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WTI crude rally underpins outperformance in...>

FOREX
FOREX: WTI crude rally underpins outperformance in oil-tied FX
-WTI crude oil broke above $74/bbl Thursday for the first time since late 2014
as Trump's sanction plan on Iran continues to support prices. This dragged
oil-tied FX higher, with CAD, NOK and AUD all doing well. As a result, the USD
index had an inside day, despite briefly touching multi-month highs in early
European trading hours.
-The NZD trend that began in Asia extended through Europe and US hours, with
$0.6676 the next target after marking the Q2 2016 low. USD/CNH extended its
recent rally to 11 consecutive sessions, with markets appearing to eye Cnh 6.65
next, but the pace of today's rally couldn't match up to that seen earlier this
week. Friday's PBoC fix will be watched for any confirmation of the recent
trend.
-USD/JPY improved late on in the session as lower Wall Street open was erased at
around the halfway mark, but is yet to reclaim Wednesday's highs of Y110.49.
-CPIs from across the EZ were non-directional and the EUR didn't pay any
attention, priming markets for an inline Eurozone CPI estimate reading tomorrow.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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