Forex news for NY trading on April 12, 2018.
- US stocks end the session with solid gains in anticipation of a good start to earnings
- NZDUSD spends most of the day above March's high. Is it a prelude to a run higher?
- UK PM May: Cabinet agreed that it is vital that use of chemical weapons
- Australia sets May 14 deadline for crypto exchanges to register for regulation
- Banxico keeps rates unchanged at 7.5% as per expectations
- Pres. Trump: China negotiation with US over trade "very hard"
- Audio recap: US dollar fights back, pound resists
- Trump to sign memorandum for EPA to cut red tape
- Seeing a dollar move lower on Syria news. Stocks trim some gains.
- US considering striking 8 targets in Syria - report
- US sells 30-year bonds at 3.044% vs 3.045% WI bid
- Trump eases up on the anti-Mueller rhetoric, says he has confidence in his lawyer
- Trump told Kudlow to "go get it done" on joining TPP
- GBPUSD test key weekly technical level. What is in play and why is it so important?
- European indices end mostly higher as stocks cheer a lower EUR/ECB/some stability
- Trump says will have a meeting on Syria today. Mattis says nothing decided yet
- Pompeo says he 'wants to fix' Iran nuclear deal
- Trump says no timeline for NAFTA talks but they're coming along great
- Bolton continues to clean house at the National Security Council
- Gold is a bet on bombs in Syria at the moment
- It's time for me to go, but I hope I passed the audition
- German Dax tests a key resistance area
- EURUSD rolls over and runs back toward the 50% and 200 hour MA
- Bitcoin finds a buyer(s). Cracks $8000 for a moment. What next?
- Canada Feb new housing price index +2.6% vs +3.0% y/y expected
- US March import price index MoM 0.0% vs. 0.1% expected
- US initial jobless claims w/e 7 April 233k vs 230k exp
- The NZD is the strongest and the CHF is the weakest as NA traders enter for the day
In other markets, a snapshot shows:
In other markets today the snapshot near the end of the day is showing:
- Spot gold is trading down -$18.32 or -1.35% at $1335.03. A higher dollar has helped the price action today
- WTI crude oil is currently trading up $.29 or 0.45% at $67.12. The price was lower earlier in the day but a report in the NA session that the US was targeting 8 sites in Syria, sent the price back higher on the geopolitical concern.
- Bitcoin broke to the upside after a few days of non-trending activity. The digital currency is up $820 and $7710. The high for the day extended above the $8000 level on it's way to $8050.
US stocks ended higher ahead of some key bank earnings in the NY morning tomorrow:
- S&P fell rose 21.8 points or 0.83%
- Nasdaq 71.22 points or 1.01%
- Dow 293.60 points or 1.21%
The US yields were higher today.
- 2 year 2.348%, up 4.1 basis points
- 5 year 2.674%, up 6.1 basis points
- 10 year 2.8395%, up 5.8 basis points
- 30 year 3.045%, up 5.0 basis points
In trading today, stocks, bond yields and the US dollar were higher. The gains in each tend to run counter to geopolitical concerns about an imminent strike in Syria. Today, it was reported that Trump (and his staff) were looking at 8 different sites for a retaliatory missile attack in reaction to the chemical attack on it's own people. It remains a risk for the market going into the new trading day.
Other news today showed:
- import prices lower than expectations and export prices higher.
- US initial unemployment claims came in near expectations at 233K vs 230K est.
- In Canada the new house price index came off to 2.6% from 3.0%.
- At the start of the NY session , the ECB meeting minutes were thought to be more dovish. Weaker industrial production, prior to the NY opening, helped to keep the EUR more pressured today.
For the US dollar, although it was higher generally on the day, it was mixed vs the major currency pairs.
Looking at the chart below (top left) the greenback was higher vs the CHF, JPY and the EUR, was lower vs the GBP and NZD, and near unchanged vs the CAD and the AUD.
What are some of the highlight from a technical perspective as the new trading day begins?
GBPUSD:
The GBPUSD stalled near its key 200 week MA at the 1.4240 area. The high for the day reached 1.4246 (bloomberg has the 200 week MA at 1.4245). The price has not closed above the 200 week MA since October 2014. That's a long time ago.
EURUSD:
The EURUSD moved below the 200 hour MA and 50% retracement at 1.2303, but the low could only get to 1.2299. The corrective move higher moved to 1.2339 - 4 pips above the 38.2% retracement. Like the break below the 200 hour MA and the 50%, the momentum faded. We are closing below the 100 hour MA at 1.23326 and the 38.2% at 1.23357. That is upside resistance to stay below if the bears are to remain more in control
USDJPY:
The USDJPY made new highs for the week - taking out the Tuesday high at 107.392. The high reached 107.42. The problem wiith that is the month highs were 6 pips higher at 107.486. That inability to get above that high helped to send the price back down. The 100 hour MA is below at 107.00. That remains a bullish above and bearish below barometer for the market into the new trading day. A move above 107.486 should solicit more buying.
