Forex news for US trading on August 10, 2016
- Stocks down with Nasdaq leading the way
- Crude oil futures settle at $41.71 per barrel
- A re(view) of the major pairs...Let the "pictures" do the talking
- US monthly budget for July shows -112.8B vs -115.0B estimate
- Reuters: Bomb alert reported on two planes due to land at Brussels airport
- 10 year note yield at 1.503%. Bid to cover 2.43 vs 2.33 at last auction
- If EURGBP closed here, it would be the highest close this year
- Forex technical levels: NZDUSD key levels through the RBNZ decision
- Here comes the inflation following Brexit
- European stocks don't have much to shout about at the close
- USD bounces as the heat comes out of the commodity rally
- EIA weekly oil inventory data +1055K vs -1500K exp
- Are we in the midst of another big global yield hunt?
- US June JOLTS job openings 5624K vs 5588K expected
- Four trade ideas from Westpac
- Technical analysis: Gold retreats a bit...
- US stock futures point to small gain; bond rally continues
- Forex trading: EURUSD runs toward a key resistance area
- Another day, another big figure in USD/JPY
- The strongest and weakest currencies as NA traders enter for the day
- USD on its own with little on the calendar to help
The JOLTS Job openings were solid. Nothing new there and as Adam pointed out, the "market" is somewhat numb to the jobs market now. You can add that the market is numb to central bankers too. That leaves inflation and maybe even productivity gains as things of concern. Neither are showing signs of life - at least in the US. Ryan did post a story on how the lower pound is already leading to importers raising prices on the back of the post-Brexit GBP weakness. The currency impact is certainly working its way through the market quicker these days. ; ).
The dollar was lower in trading today but is ending off low levels. Here are some of the highlights.
The EURUSD was pushing against resistance at the 1.1189-94 area Old lows and high from the end of July and early August and a trend line coming down from the June 24th high cut across at that are. That area will be key in the new trading day.
The USDJPY started the NY session making new lows just below the 101.00 level (low at 100.95). The pair moved up about 40 or so pips to between the 38.2-50% retracement of the days trading range and stalled (between 101.33 and 101.45). The buyers tried to push higher using the intraday 100 bar MA on the 5-hour chart as a support level but a late day sell off at 5 PM pushed the pair back to the 101.00 level. IF the pair cannot get above the 101.33-45 level, are the buyers really taking back some control from the sellers. I think not. A break of 100.95-101.00 should solicit more selling.
The GBPUSD played follow the dollar at the start of the NY session. That did not last long, however as a move above the 100 hour MA failed and buyers turned quickly to sellers. The selling did not cease until the price had completed a full lap back to the downside (at 1.2990). The last few hours of trading found support against the 1.3000 level. A convenient level for summer time traders to stick a bid in and see if the level holds. It did but the upside has been capped so far at about the 1.3025 level. In the new trading day a move above the 1.3030-50 will be eyed if this pair is to show bullish signs. The 1.3050 is where the 100 hour MA is currently located. The move above that level did not really pan out earlier today.
The RBNZ cut rates by the expected 25 basis points and the NZDUSD rocketed higher and tested the 0.7324 high from July (high reached 0.7337). The 50% of the move higher comes in at 0.7255. Stay above and the buyers hold control. Move below and the waters get muddy technically. Wheeler said it in his press conference they want to see the NZD lower but admitted they have limited influence on the exchange rate. So follow the price action and the tools. In addition to 0.7255 watch 0.7237-43 for support buyers on dips.
