Forex news for US trading on October 10, 2016
- US stock indices end the day higher but off best levels
- Crude oil futures settle at $51.35 per barrel
- House Speaker Paul Ryan...Forget Trump. Will focus on defending Republican majority
- Iraq (not Iran as first posted) agrees to limit oil output target to 4.75m - 5mbpd
- UK Brexit minister Davis: We will reject any attempt to undo the Brexit vote
- OPEC hopes to reach a common understanding with non-OPEC members on implementation of Algiers deal
- Has anyone settled on a consensus for the GBP flash crash low yet? How does it affect our charts?
- So much for the cluster of support in the USDCAD
- September 2016 US employment trends index 128.5 vs 128.0 prior
- US stocks sailing higher on Columbus day
- The strongest and weakest currencies as NA traders enter for the day
- Venezuela president says oil prices must be fairer and more realistic
- USDJPY continues to claw back the NFP losses
Today was Columbus Day in the US and although it was not a stock market holiday, the bond market was closed and so were government offices. In addition it was Thanksgiving in Canada. So that too took out part of the market in the NA session.
With governments shut down, there was an absence of any meaningful news although oil prices did rise on the back of comments from Vladimir Putin saying that Russia was ready to freeze or even cut output with OPEC. Whether you believe it or not, the comments did help to push the price of crude oil higher. That helped the CAD rally (the USDCAD move lower). That move pushed the price below a cluster of support at the 1.3205-14 area and the selling did not slow until reaching 1.3138. Last week, the USDCAD for the most part ignored higher oil prices. Today, was a different story. Maybe it was liquidity, but the break below the 100 day MA is more bearish. PS the CAD was higher against all major currencies in trading today with the CADJPY being the strongest (SEE post here).
The EURUSD moved lower today. The bearishness was set up from a break of the 100 day MA and 38.2% retracement at the 1.1166 area. The NA session saws a slow grind lower. That move took another 35-40 pips off the price. The next target is the swing lows from end of August and September 22nd. They come in at the 1.1122 area.
The GPBPUSD drifted lower as well during most of the NY session. That drift sent the price down toward the 50% retracement of the move down from the post-crash high, to the post-crash low (see post here). There was a push below at the 1.23528, but that did not attract much activity in the quiet NY trading. As a result, there was a slow drift back higher.
In other pairs:
- The USDJPY moved above the 100 day MA at 103.544 and will close above that MA line for the 2nd time in 3 trading days. The question is, "Can the buying continue and push the price away from the key MA level?"
- The NZDUSD is closing below its 100 day MA for the 1st time since May 30th. Like the USDCAD, if you get a break of one of the longer MA lines, you kinds expect some follow activity in the direction of the break. That is what traders will be looking for in the new trading day.
The US stock market was higher but off the high levels of the day. The S&P rose by 0.46% while the Nasdaz increased by 0.69%.
Below is a snap shot of the strongest and weakest currencies in trading today. The CAD is the strongest, while the JPY is the weakest.
