Forex new for US trading on May 20, 2016
- US stocks end up, but off the highs
- CFTC Commitment of Traders: AUD longs pared 13K. Other currencies little changed
- White House on lockdown after reports of gunshots nearby
- S&P higher but off the high after testing 50 day MA
- G7 unlikely to alter rules of the road: How to position? - BNPP
- Yen buying picks up pace after BOJ exit story
- BOJ seen preparing for exit from easing with reserves:Nikkei
- Baker Hughes total rig count down 2 to 404
- Japanese pickle, euro fickle: Sell EUR/JPY, sell EUR/USD - Deutsche Bank
- The Brexit vote is all over now the celebs have signed up to stay
- European stocks carve out an up week at the close
- New York Fed's Nowcast GDP rises to 1.7% for Q2
- Pimco: Putting markets into perspective. Required reading/viewing for the weekend
- Forex Trading Education: Take a step back and see what the big picture is saying
- Inflation rising on higher oil price may have an effect on policy says ECB's Nowotny
- April 2016 US existing home sales 5.45m vs 5.40m exp
- IMF officially detail Greek proposals
- Greece's Tsakalotos is optimistic for short-term debt relief
- Canadian March retail sales ex autos -0.3% vs -0.4% expected
- April 2016 Canadian CPI 1.7% vs 1.7% exp y/y
- G7 Summit: Dijsselbloem says improving competitiveness by currency devaluation is unwise
Fundamentally, Canada retail sales ex autos came in negative at -0.3% vs expectations of -0.4%. CPI was 1.7% - as expected. US existing home sales were a little better than expectations at 5.45M vs 5.40M estimate. Inventories remain low at 4.7 months. The Median sales price rose to 232K from 221K. The concern in the housing is not enough affordable housing is available for the new home buyers. US stocks were higher but off the lows. Bond yields were little changed in trading today as was gold.
The dollar today was mostly higher but most of the gain came against the GBP. The GBPUSD was the outlier earlier this week when Fed officials spoke about tightening. The reason? The GBPUSD was being supported by Brexit "NO" vote increasing. So instead of fallling against the dollar, the GBP rose. Until today at least when the bid started to erode. By the time all was said and done, 50% of the move higher was given back (the 50% of the weeks range comes in at 1.4497). The pair is closing right around the 50% level. At least half remains.
The EURUSD. Is it worth talking about the EURUSD? The pair remained confined in a 41 pip trading range. There was one attempt to extend higher and in the process, a new two day high was made (above 1.12297). That break was short lived and the week is ending with the price sitting on the 50% of the move up from the March 2016 low. That is the line in the sand that I outline in my video for the day. You can watch it HERE.
The USDJPY wandered hiigher this week - moving about 200 pips from the low to the high (reached today) At the peak today, the pair was testing trend line resistance connecting the high from March and April. That line cut across at 110. 54. The high reached 110.58 before selling off into the close. There was a late Friday headline that lalked about the BOJ putting money aside to cover losses from QE (unconfirmed). The speculation is the BOJ would stop QE.
The NZDUS was pushed higher on the back of vistors increasing. Al that occurred during the Asian Pacific session. There was a push to new day highs during the early NY session. That move took the price above the 100 hour MA and 50% retracement level. That move failed. and new London session lows were made. The rest of the day was spent trading up and in a 23 pip trading range.
The USDCAD traded at the highest level since April 7th - taking out yesterday's high in the process. That push to 1.3161 lasted for 15 minutes. The failure turned the traders around and it was fast break the other way.
Thanking all for the great support, comments and questions this week. Wishing you all a fantastic weekend.
