Forex news for NA traders on January 16, 2018.
- US stocks wipe out big gains and end down on the day
- Bitcoin futures hit lifetime low below $11,000
- BOC preview: The market is uncertain and nervous
- Bitcoin stalls for the second time at December swing low level
- Top 3 tips from someone with 10 years of professional trading experience
- Trump not inclined to pull out of NAFTA - report
- ECB's Weidmann: Analysts' expectation for a mid-2019 rate hike is roughly in line with ECB guidance
- US stocks fall into negative territory
- The Swiss play by different rules
- White House told Bannon not to answer questions about White House and transition - Fox
- You can't complain about the stock gains but are we seeing a technical ceiling?
- Ripple has really lost its luster
- Audio recap: Battle for the weakest currency
- Tillerson: We must increase the costs to North Korea until they come to the table
- ECB Weidman: Ending asset purchases this year would be appropriate
- European stocks end the session mixed. 10 year yields lower.
- Trump and China's Xi share some optimism on North Korea
- NY Fed survey: 1-year and 3-year inflation expectations rise in December
- The 2013 run-up in Bitcoin may have all been an illusion due to manipulation
- What technical levels are bitcoin traders focused on (and there are some key ones)?
- GDT price index rises 4.9% vs 2.1% prev
- ECB's Villeroy: Recent euro appreciation is a source of uncertainty
- This quarter should dispel the myth that corporate earnings are tied to reality
- US January Empire Fed manufacturing index 17.7 vs 19.0 expected
- Citigroup Q4 2017 results beat expectations but report net loss on one-off charge
- ForexLive European FX news wrap: Greenback feels some love and Bitcoin tumbles
A snaphot of other financial markets near the end of day close is showing:
- Spot gold down $1.50 or -0.11% at $1338.58
- WTI crude oil futures are trading down $.43 or -0.6% at $63.87
- US stocks wiped out big gains and are ending the session lower. The tech heavy NASDAQ index fell the most at down -0.51%. The S&P index fell by -0.35%. CLICK HERE for a review of the US stocks
- US treasury yields saw a flattening of the yield curve. Two-year is ending up 1.7 basis points that 2.014%, while the 30 year is ending down -2.1 basis point at 2.8256%. The 10 year yield is trading at 2.5371%, -0.9 bp on the day.
- European stocks ended mixed. 10 year yields were lower.
Coming back from the US holiday on Monday, the calendar was light. Only Empire Manufacturing index was released with no Fed speakers on the docket. The Empire manufacturing index came out at 17.7 vs 19.0 expectations, but there little reaction.
The dollar coming into the NA session was showing some gains. The EURUSD was down testing the 1.2200 level after stalling near the 1.2300 level yesterday. The USDJPY moved higher on the back of stronger stocks. The GBPUSD fell to a low of 1.3741 in the London morning session after trading as high as 1.3818 on Monday. However, US stocks which were up large early in the session started to see declines and the dollars gains were whittled away.
Overall the greenback took back the earlier gains vs. most of the major currency pairs, and is going out near unchanged levels vs. the EUR, GBP, JPY, CAD and AUD (see USD changes in the chart above). The greenback did fall -0.40% vs the CHF. The CHF was the strongest currency of the day. However, it gained a near identical 0.36% against the NZD. The kiwi is ending the session as the weakest currency. The NZD fell into the NY session (dollar higher) but rallied a little higher in the NY session. The gains were helped by higher Global Dairy Trade auction prices.
The up and down dollar market, left the focus on bitcoin and it did not disappoint.
For the day, the price of bitcoin on the Bitstamp exchange traded down over -$3,400 to a low of $10,415. That fall took the price below its 100 day MA at $10,566 Bitcoin has not closed below the 100 day MA since July 16th, and at that time it was only for a single trading day. You have to go back to March 2017 to get multiple days where the price has close below the 100 day MA. For comparison, the price of bitcoin on those days were around the $1,000 level. Even at $10,000ish, the price is 9 times higher.
As I type, the price is rebounding after the late day tumble and trades at around $10,700 - just above the 100 day MA. Nevertheless, the sharp fall is putting the pressure on the longs. Anyone who purchased the largest of the cryptocurrencies after December 4th are now in the red. The high price reached $19,666 on December 17th. Ouch. Traders will be eyeing that 100 day MA in the new day. Does it hold? Does it give way and put even more pressure on the longs?
Other crypto currencies were also under pressure. Ripple was particularly hammered. It fell below $1.00 to a low of $0.9885, and lost -44% of it's value on the day. Litecoin is down -30%. A rough day for the digital currencies.
So what is causing all the selling?
There continues to be regulatory concerns from South Korea and today from China. Also toward the end of the NY session, Bitconnect announced it was going to shut down. Ouch (again). It is starting to get scary in the cryptocurrency market. Be careful.
