Forex news for US trading on August 2, 2016.
- Fed's Lockhart: Need to see how Brexit plays out in medium term
- Dollar selling slows as the day moves to the close
- WTI crude oil futures settle at $39.51/BBL
- BNP calls for September rate hike but....
- The GBPUSD run higher is not over...
- Tuesday trip up for European stocks
- EURUSD looking for its next squeeze play?
- VW and Chrysler miss next in the auto sales numbers
- Dollar in the doldrums - USDJPY tests 101.00 GBPUSD pops above 1.3300
- Forex technical analysis: AUDUSD continues the squeeze higher
- July 2016 US ISM New York business conditions 60.7 vs 45.4 prior
- July US auto sales disappoint in early numbers
- July 2016 Canadian RBC manufacturing PMI 51.9 vs 51.8 prior
- June 2016 US personal income 0.2% vs 0.3% exp m/m
- The strongest and weakest currencies as NA traders enter for the day
- There's no signs of Brexit triggering a global slump says ECB's Lane
- Kaplan is looking for 80-125k jobs growth per month
- Large option expiries casting a shadow again
The NY session saw the dollar tumble, the JPY rise as stocks were weaker and traders interpreted fiscal stimulus not up to expectations. On the economic front, US core PCE came in as expected, personal income was on the light side but personal spending was a touch better.
The USDJPY saw steady selling with the pair getting closer to the parity level. The low today reached 100.67 before rising marginally into the day's close. US stocks were lower with the S&P ending down -0.64% and the Nasdaq composite index down -0.90%. European stocks were worse off with the Euro Stoxx index down -2.03% and the Dax down -1.80%.
The GBPUSD also trended higher - despite the expectations for a BOE cut on Thursday looming. The pair closed at the highest levels since June 29th. The GBPUSD was also helped by a weak EURGBP which trended lower until hitting support right at the 200 hour MA in the last hour of trading. That MA comes in at 0.8398 and will be eyed as support in the new trading day.
The EURUSD rose and was able to extend a 50 pips trading range as NY traders entered, to about 76 pips by the late afternoon. The pair's move higher did find sellers against the 100 day MA at the 1.1235 level. The high for the day peaked at 1.1233 just two pips shy of that key technical target. The low today based off a support area for the pair at the 1.1153-59 price level. Close support in the new trading day will be eyed at the 1.1214-18 area where there is trend line support on the hourly chart.
The USDCAD had an up and down trading day - following the lead of the crude oil futures. Technicals also came into play as support held the 1.3000 level where the 200 bar MA on the 4-hour chart was found. Oil peaked as the USDCAD was reaching it's low price. The subsequent rally off the lows took the price up to the 100 hour MA at the 1.3115 level. The high for the NA session peaked at 1.3114. IN the new trading day be mindful of that 100 hour MA level at 1.3115 as well as the 200 hour MA at the 1.31395 level A break above both should help to propel the pair even higher although I would expect sellers on the first test of the 200 hour MA. Staying below the 1.3115 will likely move the pair back down toward the 1.3071 level in the new trading day. This is the 100 bar MA on the 4-hour chart and has been a level where a market crowd gathers. Expect bids against the level on a test.
The AUDUSD accelerated higher in the NA session and the price traded at the highest level since July 15th. The high close going back May 2 at the 0.7630. When the price moved to a high of 0.7637 but could not stay above the 0.7630 level, sellers took the pairs price back lower into the close (closed at 0.7608). In the new trading day, a move below the 0.7579 should take some of today's bullishness out of the market. A move above 0.7630 and I would expect further upside momentum.
