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Forex - USD/CAD, USD/JPY Flows: Oil edged up on Wednesday, lifted by reports of Saudi supply cuts to Asia


 05:05 (GMT) 11 Jan

  [Forex Flows]

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USD/CAD, USD/JPY Flows: Oil edged up on Wednesday, lifted by reports of Saudi supply cuts to Asia (0100-KFFS-C01)

Reuters: Oil edged up on Wednesday, lifted by reports of Saudi supply cuts to Asia, but prices were prevented from rising further over a lack of detail of these reductions and because of signs of rising supplies from other producers. Traders said that the price rises were a result of reports that Saudi Arabia, the world's top oil exporter, was telling some Asian customers that it will curb crude supplies slightly from contracted volumes in February, although Reuters was not able to confirm any details of the reductions.

Once again, the move below 1.3200 in USDCAD proved to be limited in overnight trading, with the overnight fall in oil prices also helping. Although oil prices have since rebounded, market focus is on the Trump press conference later in the day and USDCAD is currently seen near the day/s high of 1.3254. The pair remains one of the best candidates for a medium term long and still an obvious buy on dips, even at current prices. A move back above 1.3500 should be only a matter of time, especially with the 2017 projected rise in oil prices failing to materialize thus far.


Forex - USD/JPY, GBP/JPY Flows: President Barack Obama said goodbye to the nation Tuesday


 04:09 (GMT) 11 Jan

 [Forex Flows]

CNN: Popular but politically humbled, President Barack Obama said goodbye to the nation Tuesday night, declaring during his farewell address that he hasn't abandoned his vision of progressive change but warning that it now comes with a new set of caveats. His voice at moments catching with emotion, Obama recounted a presidency that saw setbacks as well as successes. Admitting candidly that political discourse has soured under his watch, Obama demanded that Americans renew efforts at reconciliation.

USDJPY back above 116.00, and as we mentioned earlier, risk reward ratio has prompted longs to come in, even though the high was limited to 116.23. USDJPY strength means that GBPJPY should hold off a break of 140.00 for now, with only a low of 140.87 printed in the Asia session (though heaviness is still expected in GBPUSD). Traders dovish on GBP would do better to short GBPUSD instead of GBPUSD for now.


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