Forex news for NY trading on April 2, 2019
- Nasdaq leads the stocks into the close
- US envoy for Iran: US is on the 'fast track for zeroing out all purchases of Iran crude'
- France sees 2019 budget deficit at 3.1% of GDP
- Corbyn: "Very happy" to meet May after her offer to meet
- WTI crude oil futures close at $62.58
- Bitcoin holds most of the gains from the surge higher
- Fitch affirms USA at AAA with a stable outlook
- Hammond called for a election or referendum in cabinet meeting
- Theresa May: We need a further extension of Article 50 that ends when deal passed, offers cross-party approach
- Talk that Theresa May will soften her red lines
- Lots of rumors doing the rounds as UK cabinet meeting ends
- European shares end the session with decent gains
- New Zealand GDT price index +0.8%
- EU to call on G20 to support public, private investment against risks of downturn
- IMF says 70% of global economy will experience a slowdown this year
- US February prelim durable goods orders -1.6% vs -1.8% expected
- The USD is the strongest. The GBP is the weakest.
The snapshot of other markets at the end of the session is showing:
- Spot gold is up $3.88 or -30% at $1291.64
- WTI crude oil rose $1.03 or 1.67% at $69.47. The high reached $62.75. The low reached $61.60. It closed above its 200 day MA for the first time since October 2018.
- Bitcoin on Coinbase is trading up $630.31 at $4758.80. The price also is trading above its 200 day MA for the first time since March 2018 (see post here)
In the US and European stock markets, the US market closed mixed with the Dow being hurt by Walgreen (bad earnings). The European shares, in contrast, closed with pretty decent gains. Below are the changes and ranges for the major indices. The UK FTSE led the charge (helped by a lower GBP at the time. The GBP has since risen).
In the US debt market, the US yields moved lower and gave back some of their large gains seen in yesterday's trading.
In Europe, apart from the Italian 10 year yield, the other nations benchmark yield moved lower.
The big story today is an attempt by PM May to build a consortium with regard to a Brexit agreement that would first, extend the exit date from April 12 to May 22 and then get a deal done that avoids a no-deal Brexit.
The GBP started the NY session as the worst (weakest) of the major currencies. Near the close,the currency is trading near high extremes vs all the major currencies. It is now the strongest.
Below is the snapshot of the % gainers. The NZD took over for the GBP as the weakest currency followed by the AUD today.
Looking at the ranges and changes (see charts below), the GBP pairs are all trading near there respective highs and reversed the earlier declines. In contrast to the activity in the GBP pairs (and commodity pairs like the USDCAD, AUDUSD an NZDUSD), the EURUSD, USDJPY and USDCHF barely moved - with each having a range of less than 32 pips. The USDJPY range could only extend what was a 17 pip ranges at the start of the day, to 21 measly, stinking pips. UGH. So it was a GBP focused day.
Technically for some of the major traded pairs. ,
- The GBPUSD cracked above the 200 bar MA on the 5-minute chart at 1.3052. That MA stalled the rally on other tests today before the break higher (see post here talking about it's importance). Into the close, the price has just moved above the 200 hour MA at 1.31336 to a high of 1.3148 (nearly a 100 pip move from the break point). In the new day, the wide risk now for longs is the 100 hour MA at 1.30826. Stay above, keeps the buyers more in control. A move above the 61.8% of the move down from the March 27 high comes in at 1.31566. Get above that level, and the buyers are in control.
- As mentioned the EURUSD had a really narrow range day of 32 pips. The 22-day average is 60 pips for comparison. The non trending has allowed for the 100 hour MA to come down closer to the current price. That MA stands at 1.12244. Yesterday, that MA stalled the rallies. If the pair is going higher (the price is currently at 1.1202), getting and staying above that MA will be eyed. ON the downside, the 1.11858 is the 61.8% of the move up from the January 2017 low. The March low is at 1.1174. Moves below each, opens the door for a test of a lower trend line near 1.1090 (see post here).
- You thought the EURUSD day was bad. The USDJPY's day was worse as it only traded a 21 pip low to high range (Thumbs down). The good news is non-trending leads to trending. So there is hope down the line. The other good news is the ceiling the last two days, has stalled at the 200 day MA at 111.45. Get above, and we should see more of a march higher. On the downside, the good news there is 111.28 was a floor that was broken to 111.24. Big deal. Get below each, and there is room to potentially head to the 100 day MA at 111.056. On the topside, just get above the 200 day MA.
