Forex news for New York trading on November 18, 2016.
- US Stocks end the day down but only modestly
- CFTC commitment of traders: Most currency positions are pared in the current week
- GBPUSD loses the bulllish bias this week.
- The USDJPY ends the week looking bullish in a controlled trend move higher
- Fed's Kaplan: Policy divergence could further strengthen the US dollar
- Feds Kaplan: Comfortable with removing policy accommodation
- WSJ: Brexit and Beyond. Europe in flux
- Baker Hughes oil rig total 471 vs. 452 last week
- Are things about to get very interesting for the euro?
- ECB's Praet: We will take a comprehensive look at inflation outlook at Dec meeting
- Forex technical analysis: AUDUSD tests 2016 midpoint
- Spot gold moves toward $1200
- November 2016 KC Fed manufacturing index 9 vs 18 prior
- Fed's Dudley: Inflation expectations are still well anchored.
- Iraq oil minister is optimistic OPEC will clinch an output deal
- October 2016 US leading index 0.1% vs 0.1% exp m/m
- Longer-term inflation expectations are ticking up says Fed's George
- Fed's George: Raising rates sooner rather than later would curb volatility
- Pound pounded down to 1.2320 as EURGBP takes off
- The strongest and weakest currencies as NA traders enter for the day
- Bullard: One hike a year is almost nothing
In other markets today:
- The US major stock indices ended lower on day.
- For the week, the most of the global indices were higher. The Nikkei was the strongest the Italy MIB was the weakest. In the US the Nasdaq composite index led with a gain of 1.61%.. The S&P was up 0.81 %.
- Crude oil futures settled the day at $45.54, up $0.12 or 0.26%. The low for the week was at $42.23, while the high extended to $46.58
- Spot gold settled at 1208.77, -$7.73 or -0.64%. For the week, the high extended to 1233.18. The low bottomed at $1202.96
- The 10 year yield is closing at 2.338% with a high at 2.3530%.. The low was at the beginning of the week at 2.1659%
Bond yields started the week at the lows and closed the week near the highs.
The same can be said for the US dollar (see the dollar index chart below).
The two instruments are going hand and hand.
In some of the major currency pairs today:
- EURUSD: New lows going back to Dec 3rd took the price below 1.0600 (lowest close since Nov 30th). The pair has been lower for 10 straight days.. See Ryan's post HERE.
- GBPUSD: The week saw the price chop lower and close near the lows for the week. But the low on Friday stalled at a retracement level, but puts into question if the low is in place. (CLICK HERE for the technical story).
- USDJPY: The USDJPY is closing the week near the highs for the day and the week and near a key technical level at 111.00. Bulls/buyers are still in charge (CLICK here for the technical story on that pair).
- AUDUSD: The low today (low for the week) stalled at the 50% of the move up from the 2016 low to the 2016 high. We are closing right at that key technical level. (CLICK HERE)
Like the dollar index chart shows, the dollar is going out near recent high levels. Some of those levels are near some areas that can make or break the upward trend.
We will see what the weekend brings (eyes will be on Trump and potential cabinet appointees) So far his appointees are hard liners mainly on immigration. He may be making appointments for Treasury Secretary and Secretary of State with Mitt Romney and Rudy Guilliani rumored to be fighting it out (at least in the press). Will Trump break from his posse and include an outsider (in Romney) or go with the loyalist (and volatile) Rudy?
Next week is US Thanksgiving week. It is a shortened week but given the fragile, trending market, there is still room for some action.
Have a great weekend.
