Forex news for NY trading on January 21, 2019
- UK cross party lawmakers propose bill to block no-deal Brexit
- UK May spokesperson: UK/NZ reaffirmed their shared desire to forge high quality free trade
- Scheduled earnings this week
- SNB Zurbruegg: Outlook for Swiss economy favorable
- Italy's Economic minister Tria: Italy does not pose risk to European/global economy
- UK May's spokesperson: EU has shared determination for a deal
- European stock indices end the session lower
- PM May Plan B: Regrets opposition has not taken part in Brexit talks
- BBC: PM May to say will take conclusions on discussions of N. Ireland back to EU
- IMF cuts global growth forecast to 3.5%. Slowest in 3 years.
- Forexlive European FX News 21 Jan - Quiet session ahead of May's plan B
Other markets:
- Spot gold fell -$1.47 or -$-0.11 at $1280.28
- WTI crude oil futures trading at $53.90, up $.10 on the day
- Bitcoin on Coinbase up $.90 at $3540.52. The range today was narrow with a low at $3508 and a high at $3569.
The US stock and bond markets were closes in observance of Martin Luther King Day. They will reopen in tomrrow.
The European stock and debt markets were open. In Europe most of the major indices closed in the red. The UK FTSE eked out a small gain as did the Canadian S&P/TSX index.
In the debt markets in Europe, yields are ending the session mixed with German, UK and France, down marginally, and the higher risk countries, with modest rises in yields.
In the forex market today, the near end of day snapshot is showing the GBP is the strongest, while the CAD is the weakest.
The only event of the day was the "Plan B" announcement by UK PM May to Parliament. In reality it was much of the same, but in doing so, the impetus is put back on the lawmakers to propose other plans that will be debated on, and thenvoted on. Assuming they are approved, the EU would then need to review and approve.
Some take aways from PM May:
- She remains opposed to a 2nd referendum or election.
- She refuses a no-deal exit from EU. "A no-deal is avoided by making a deal"
- She was a bit ambiguous with regard to extending the Article 50 date, but later in questioning did not rule out an extension of the March 29 end date
- She wants EU to work on an Irish backstop framework that would be more palatable to UK
- In a concession to many lawmakers she has dropped the charge that was to be levied on EU nationals who wanted to apply for settled status and was hoping that the EU would do the same
Later in the day, some UK cross-party members proposed a bill to block a no-deal Brexit. It seems to be a universal understanding that both the UK and EU do not want a no-deal Brexit. However, the PM still refuses to rule out a no-deal Brexit as a risk for not working toward a deal.
The overall feeling is the PM is volleying back to the lawmakers.
The GBPUSD moved higher and in the process moved above the 100 hour and 100 day MAs (currently at 1.2890 for both). The high price reached 1.29096, before wandering back down toward the MAs into the close. The price for the GBPUSD is ending right around the MAs.
The EURGBP today moved higher ahead of the PMs announcements but stalled right near the 200 day MA at 0.88598. The price rotated lower as the GBP got stronger - making a new session low 0.88059. A move below the 0.88000 in the new day will open the downside for more selling in the new day (and going forward. The low last week stalled at 0.8755.
The EURUSD traded very quietly in the North American trading session with a low of 1.1356 and a high of 1.13708 (less than 15 pips). The USDJPY range was from 109.59 to 109.69 (only 10 pips).
The AUDUSD fell below a swing low area at 0.71458-497 (low reached 0.7140). That break below the floor (going back to January 9) failed to find momentum selling. the rest of the NY session saw the pair rally back higher (to 0.7160). The 100 day and 100 hour MA are above at 0.71716-756. ON a rally toward the area, there should be sellers in the new trading day.
