Forex news for traders on July 10, 2017
- US stocks end the session with gains to start the week
- US May consumer credit rose $18.41B ; Est. up $13.5B
- US crude oil futures settle at $44.40, up $0.17
- US import from Mexico exports jump 15.8% in 1H: CNBC
- EU Economy Chief Moscovici: Economy is now strong and solid
- RBC goes short GBPUSD at 1.2895
- European stocks did ok today. All major indices end higher
- US consumer expectations jump in New York Fed survey
- June Fed labor market conditions index 1.5 vs 2.5 expected
- ECB ramped up asset purchases last week
- Goldman Sachs doesn't think the Bank of Canada will hike rates this week
- Warren Buffett is working past 70 because he likes it, but most others don't
- The strongest and weakest currencies as NA traders enter for the day
In other markets:
- Spot gold is up $1.08 to 1214.23 or 0.09%
- Crude oil is trading at $44.42. up 0.18 or 0.43%
- US bond yields are lower but little changed from NY opening day levels. The 2 year is 1.383%, down -1.6 bp. The 5 year is at 1.93%, down -1.6 bp. 10 year is at 2.371%, down -1.4%. The 30 year is at 2.927%, Unchanged.
The NY session saw limited moves in most of the major currency pairs especially in the EURUSD, GBPUSD and USDJPY. In other pairs like the AUDUSD, the pair fell in the London session but moved back higher in the NY session. The USDCAD had a similar move. It rose in the London session, but fell back lower in the NY session.
Below is a snap shot of the changes (top chart) and ranges (bottom chart) from near the close of trading today. The biggest change of the major currency pairs from Friday's close was 18 for the USDCHF. The EURUSD is down 5 pips. The USDCAD is up 8 pips (after having a pretty good run higher). The AUDUSD range is ending up 5 pips, the NZDUSD is ending down -6 pips.
Even the cross currency pairs are mostly trading near the unchanged line.
As far as low to high trading ranges (the lower chart), all but he EURCHF traded below their 22 day average ranges (the average for about a month of trading.
Summer time trading prevailed where traders were looking to make a few pips to start the new week.
A small economic calendar also contributed. US economic data was limited to June labor market conditions which came in weaker at 1.5 vs 2.5 estimate. I guess the stronger than expected jobs report from Friday was not strong enough to follow through on this compilation of US employment statistics. Later in the day the US consumer credit showed a larger than expected jump in consumer debt. That data can be interpreted a couple ways. One is that the consumer is confident about the future and therefore is willing to take on more debt. The other way is the consumer is forced to take on more debt and will be tapped out to spend down the road. The market was little impacted by the data.
What did the technicals say for some of the favorite currency pairs?
For the EURUSD, the price tried hard to fall below the 200 hour MA at 1.1387 for 6 hourly bar into the NY session but just could not get anywhere. So buyers took the price modestly above the 1.1400 level To a NY session high of 1.1407. That is where is stalled. Stay above the 200 hour MA at 1.1387 and the 100 hour MA at 1.1380 and the buyers are in control. The 1.1435-65 remains a key, key area to get above.
The USDJPY rallied to a 114.294 high price which got close to the May high of 114.367. In doing so, the market extended the momentum from Friday's better than expected US employment report. However, buying stalled ahead of the next key target high, and sellers pushed the price back down toward the 114.00 area. The pair seems kinda tired but there is support below against a trend line on the hourly chart at 113.68 followed by the 100 hour MA at 113.55 (both are moving higher). The levels held support on both Thursday and Friday of last week.
The USDCAD is trading ahead of the BOC meeiting on Thursday where the central bank is expected to join the US in taking back some of it's easings (a 25 bp increase is largely expecting). The CAD weakened (the USDCAD rallied) in the Asian/London session, but when it got within smelling distance of its 100 hour MA, the price rolled over and moved lower in the pair. The 100 hour MA is the barometer for bullish and bearish going forward. It comes in at 1.2936. On the downside, a lower trend line at 1.2840 area will be eyed for dip buyers.
The GBPUSD held below 1.2892 on two separate tests in the NY trading session. That level was also the low from July 5th. Stay below is more bearish. A move below the 1.2860 level below (382.% of the move up from the June 21 low will need to be broken (and stay broken) for sellers to start to pile on. That level was broken twice today (too), and each look below, buyers showed up. A third time might not be so lucky for the buyers (that is, look for sellers).
The AUDUSD moved up and down today but is closing above the 100 hour MA at 0.7597. Stay above is more bullish with a move above a trend line at 0.7616 and then the 200 hour MA at 0.7628, additional upside hurdles.
Wishing every good fortune in your currency trading in the new day.
Below is a snapshot of the winners and losers in today's trading
