In just about every asset class, exuberance ruled the day. The concluding episode was threatening aversion closing the S&P 500 on the lows, down16 points to 1979. The market at midday ripped up to 2017 in rallying relied as oil shortly leaped $3.
The sad story concerns the ruble as it continued plunging not assisted by the massive interest rate hike in Russian. USD/RUB upped as much as 23% setting in a panic. The situation leaked over to trades at risk and pulled down USD/JPY to 115.57 just over the retracement of 38.2%.
The outflows from Russia were advantageous to EUR/USD. The pair peaked climbing to 1.2569 and above about one cent on the day. Russia started stabilizing but it fell back down to 1.2480; although some bidders already stepped in there two times to create a dual bottom and a bounce to 1.2515.
Having long been the choice port of Russian money, it has the same effect in the UK. The number of UK CPI were subdued today and that ignited the beginning of a cable escalation to 1.5612 but it rebounded in a huge way and pulled to 1.5784 with the top arriving at the beginning of US trading. The session was mostly spent in consolidating the 1.5725 to 1.5760 range.
Canada’s dollar survived the oil drop and leaped well probably due to the deal in Talisman. However, the tandem de-escalated down to 1.1607 then recovered to 1.1640.
The Aussie was not going far as well. Following a 0.8275 jump in Europe it declined to 0.8210 in its trading with US and stayed within a short distance of the lows in fresh cycle.
The marker overall was dangerous and is trying to message the Fed to be careful.