Forex news for NY trading on February 18, 2019.
- Nothing going on now, so what is ahead for tomorrow?
- The Guardian: Four cabinet ministers tell UK May to stop using no-deal threat to negotiate
- EU Juncker: If Britain asked for an extension, no one would oppose it
- Bitcoin tests 100 day MA for the first time since October 2018
- The GBP is the strongest and the NZD is the weakest as London traders look to exit
- European major stock indices end the day mixed
- EU Juncker: Pres. Trump gave word that there would be no tariffs on European cars
- Praet: ECB could adopt guidance if economy slows sharply
- US plans to keep the auto tariffs recommendation a secret for now - report
- Oil hits a three-month high
- The silver lining if the US hits the EU with car tariffs
- Honda to close UK Swindon auto manufacturing plant in 2022 - report
- Gold rises to highest since April 2018
- Irish foreign minister says they won't allow changes to Brexit deal
Other markets are showing:
- Spot gold is up $4.98 or 0.38% at $1326.53
- Spot silver is up $0.019 or 0.12% at $15.806
- Bitcoin is the big mover on the day having risen by $278.32 to $3861.56. The digital currency is testing the 100 day MA at $3867.54 (see post here).
The North American session was void of US and Canada news as both countries were observing holidays (President's Day in the US and Family Day in Canada). As a result, there was little to go on (no stocks, no bonds, no news) to push the market.
What news there was came out of the Europe. EU's Juncker reinterated things already said about Brexit. He also warned Trump that if he went against his word about tariffs on European cars, the EU would stop the purchase of soybeans and natural gas.
ECB Praet backtracked on policy saying that the central back could adopt policy guidance if the economy slows sharply.
Gold moved higher as did oil which reached a 3-month high.
Bitcoin was a big mover after Chase (remember Jamie Dimon saying bitcoin was a scam?) said that it is launching its own JPM Coin cryptocurrency. Now that is not bitcoin, but it is an acceptance of digital currencies in general. Technicallly, the price has been testing the 100 day MA at $3867.54.
The snapshot of the winners and losers in the forex market is showing that the GBP is the strongest, while the NZD is the weakest. The USD is mixed with modest gains vs. the JPY and AUD and more significant gains vs the NZD (+0.25). The greenback is lower vs EUR, CHF and CAD with a bigger decline vs the GBP. Last week the NZD was the strongest of the majors. The GBP fell vs. most pairs. So the price action today corrected some of those trends from last week.
Some technical levels to eye in the new day:
- EURUSD. On the downside, the EURUSD stalled at the 100 hour MA twice today (currently at 1.12968). On the topside a trend line was broken but failed today. That line comes in at 1.1321. Above that, is the 38.2% and highs from last week at 1.13405. Get above, and there could be more short covering
- GBPUSD: The low in the GBPUSD today stalled near its 200 hour MA at 1.28912. On Friday, the price moved above the 100 day MA at 1.2878. We currently trade above at 1.2926. Stay above each keeps the corrective move higher in play.
- The USDJPY traded in a 22 pip range today. That ain't alot. The highs did remain under the 100 hour MAs at 110.630. If the price can move above the 100 hour MA it would solicit more upside. On the downside, the rising 200 hour MA stalled the fall on Friday. It is currently at 110.33. A move below shoulld solicit more selling.
- The USDCAD held support against the 100 day MA at 1.32259. That will be the barometer for the bulls and bears today. Stay above and the 100 and 200 hour MA at 1.3253 and 1.3263 become targets. A break below the MA and there should be some stop sellers.
Wishing all good fortune in the new day of trading.
