According to the US EIA, crude oil stockpiles fell by 3.4 million barrels instead of rising by the projected 0.1 million barrels, easing fears of an oversupply. The bulk of the reduction came from Venezuela and traders are counting on further declines due to the recent forest fires in energy-rich Alberta. WTI crude oil is up to $46/barrel and Brent crude oil advanced to $47.35/barrel.
Other commodities joined the rally, taking gold prices up to $1,276/ounce and silver to $17.450/ounce. USDCAD is down to 1.2856, AUDUSD bounced off .7308 to a high of .7391, and NZDUSD is up to .6835. AUDJPY is testing support at the 79.50 minor psychological level, NZDJPY is consolidating above the 74.00 mark, and CADJPY is trading at 84.40.
GBP pairs in focus ahead of BOE Super Thursday
Pound pairs had been consolidating in the past few days as traders are positioning ahead of the BOE Super Thursday events. These cover the BOE statement, the MPC meeting minutes, and the updated Inflation Report. Traders are on the lookout for revised growth and inflation forecasts, as business conditions and trade activity have lagged but price levels have picked up. BOE Governor Carney could also express caution ahead of the EU referendum in June, as a potential Brexit could pose a large risk to economic performance.
GBPUSD is still consolidating below the 1.4450 mark, GBPJPY found support at 156.50, EURGBP is stuck around .7900, GBPAUD is testing the 1.9700 mark, GBPNZD is down to 2.1175, and GBPCAD is down to 1.8565.
Greenback dragged down by weaker equities
The lack of top-tier data from the US economy kept the Greenback sensitive to stock market performance, which yielded sharp declines in the latest New York session. The Dow 30 index closed 217.23 points down to 17,711.12 (-1.21%), the S&P 500 index edged 19.93 points down to 2,064.46 (-0.96%), and the Nasdaq edged 49.19 points down to 4,760.69 (-1.02%). Disney earnings fell short of expectations while financial results from major retailers are also expected to come in weak or show a downcast outlook.
USDJPY fell to a low of 108.23, USDCHF retreated to the .9700 major psychological support and EURUSD bounced off the 1.1370 lows to a high of 1.1447. US initial jobless claims and import prices are up for release today, although traders could still take their cues from market sentiment.