Forex news for NY trading on March 13, 2017.
- Thus ends one of the worst trades of all time
- CBO estimates that house bill would lead to 21M increase in uninsured in 2020
- US stocks end mixed with broad market fractionally higher
- Senior US treasury official says important G20 refrain from competitive devaluation
- US yields push to new session highs
- UK Commons rejects Lords' Brexit Amendments
- US crude oil futures settle at $48.40/bbl
- ...But Merkel/Trump meeting rescheduled
- FOMC meeting to go on as planned despite the snowy/sleety weather conditions
- Le Pen gains to 26.5%. Macron slips to 25% in the latest IFOP poll
- Crude oil back to unchanged but below 200 day MA
- How to trade the pound when Article 50 is triggered
- AUDUSD finds love from the old support
- The latest pop and drop in GBP
- ECB's Weidmann: Criticism over Germany for euro level is 'baseless'
- ECB QE count: Bought €5.569bn vs €16.199bn prior
- Morgan Stanley are happy to remain short the euro after the ECB meeting
- Tech targets: EUR/USD, GBP/USD, USD/JPY, AUD/USD, NZD/USD - UOB
- When China has a problem, it goes all-in for answers
- Spain's De Guindos: ECB normalising policy is pegged to an improving economy
- February 2016 US employment trends index 131.4 vs 130.0 prior
- We must address weak productivity in the Eurozone says ECB's Draghi
- Draghi's up in a mo but don't expect fireworks
- Atlanta Fed selects Raphael Bostic as new president
- German G20 official sees consensus that economic outlook improving
- ECB's Lautenschlaeger says she worries about a new wave of deregulation
- The strongest and weakest currencies as NA traders enter for the trading day
In other markets:
- US stocks were little changed. S&P +0.04%, Nasdaq up +0.24%. Dow -0.10%
- US yields were higher: 2 year 1.371%, +1.8 bp. 5 year 2.138%. +3.7 bp. 10 year 2.625%, +5.1 bp
The NA session was very quiet today with little in the way of economic releases. Perhaps a winter blizzard whiich is making it's way toward the NY metropolitan region, had traders thinking about getting out of the city and back home. Perhaps it is the storm that will hit on Wednesday when in the US the CPI, Retail sales and then the FOMC rate decision (+0.25 bp increase) will provide blizzard like conditions in the markets. Until then, we may be in for some of the same up and down activity that we experienced in trading today.
By the end of the day, the dollar was mixed with the greenback down the most against the GBP. It also fell against the CHF, AUD and CAD. It moved higher vs the EUR and JPY - but only marginally.
The EURUSD is ending the day at the lows for the day - wandering lower and ending below the 100 day MA. That MA will be at 1.06576 in the new trading day. Stay below is more bearish, with the next downside target the 200 bar MA on the 4-hour chart at 1.0634. The 100 bar MA is at 1.05789. Both are in play in the new trading day as long as that bearish bias below the 100 day MA holds. Resistance on a move higher should be capped at the 1.0700 level.
US bond yields moved up nicely today and although the USDJPY ended the day near unchanged levels, it did claw it's way higher into the close. Technically, the pair bottomed today near the 50% of the move up from the March 6th low at 114.52. We are ending the day at 114.86. Getting and staying above the 114.96-115.00 will be eyed by the bulls as the next target to get to and through. I know the USDJPY price did not really run with the rise in US yields, but the bias still is more bullish for the pair.
The bullish news for the GBPUSD is it ended the day higher on the day. 10 of 11 days were lower going back to Feb 24th. There was a spike higher in trading today on the back of tweets about PM May not invoking Article 50 this week. It may have been more of an excuse to see how high the GBPUSD could put itself off the recent floor. The move higher could only get to the swing high from last Tuesday at 1.2251 before moving back lower into the close. The GBPUSD is settling near the 200 hour MA at 1.22182. When the NY session is about 50 pips and you end about 32 pips lower from the high, the sellers showed they are still in control.
Below is a snap shot of the % changes of the major currencies vs each other.
