Oil prices are low, with WTI at $49 and Brent at $51; however today is the first day in several sessions that oil has not reached fresh lows, providing a glimmer of hope that there is some stabilization in markets. FX markets remain volatile but it is not one sided USD strength. AUD and NOK have both retraced 0.3% into the NA open; while EUR is weak as flows exit the Eurozone in anticipation of further ECB action; JPY is also weak as risk aversion fades and equities rally; CAD is flat. Equities are strong and the U.S. 10‐year has stabilized close to 2.0%. Today, the data will play second fiddle to oil markets and Friday’s nonfarm; however initial jobless claims and the Fed’s Rosengren (nonvoting dove) could generate a few headlines.
Read the full report: FX Daily