Forex news for NY trading on May 21, 2018
- The US stock summary: Major indices end the session higher on the day
- EURUSD trades to new session highs as the day works toward the close
- Harker speaks to reporters: Fed policy is on a gradual, prudent path
- More Harker: Sees no rush to move interest rates up
- Fed's Harker: US economy progressing just fine
- Regulators in US and Canada target ICOs: WSJ
- Italy's Salvini: Italy can say 'No' to Paris, Berlin, Brussels
- Fed's Bostic answers some questions
- Italy's Salvini: European commissioners mustn't worry
- Fed's Bostic: Sees US economy on track, close to Fed's twin goals
- The European stock markets are closed (or the ones that were open today).
- NZDUSD moves above the 200 hour MA in over a month. Can it stay above?
- White House's Kudlow: Regards the China news as a "growth document"
- US Sec. of State Pompeo: US sanctions on Iran will be strongest sanctions in history
- Feds Kashkari: Fed should not move too fast to raise rates
- The April Chicago Fed National Activity index 0.34 vs 0.48 expected
- The AUD is the strongest and the JPY is the weakest as NY traders enter for the day
- Mnuchin says meaningful progress was made in latest US-China trade talks
In other markets today, the snapshot at the end of the day is showing:
- Spot gold is trading up $0.57 or +0.04% at $1293.18
- WTI crude oil futures are trading up $1.30 or 1.82% at $72.58. Venezuela, demand, lower supply, Iran deal all piling on to give oil a bid.
- Bitcoin on Coinbase is trading back above its 200 hour MA at $8383 at $8399 currently. It traded below the MA line on reports that the US and Canada were increasing focus on the ICO markets (see post here). The low extended to $8309 but has since rebounded. The 200 hour MA will be a barometer for bulls and bears in the new trading day.
In the US stock market today:
- The Nasdaq rose 0.54%
- The S&P rose 0.74% and remains above its 100 day MA at 2709.18 (see post here)
- The Nasdaq rose 0.54%
- European stocks were supported by a lower EUR and GBP. The UK FTSE closed at a record high today. See post here.
In the US debt sector, the yield are mixed and off the day highs.
- 2 year 2.5677%, up 2.1 bp
- 5 year 2.893%, up 0.5 bp
- 10 year 3.0559%, unchanged
- 30 year 3.199%, up 0.2 bp
It was a holiday in a number of European countries (Witt Monday) and also a holiday in Canada (Victoria Day). It didn't really effect some decent price action in the markets.
Although data was light (Chicago Fed National Activity index came in weaker than expected) , other storylines included Fed speakers Kashkari, Bostic and Harker, Italian politics, comments from Mnuchin on China, more White House comments from Larry Kudlow.
That was more than I thought would happen at the start of the day.
Technical also played a role in the price action today.
The EURUSD was one of the pairs that reached a new multi-month low (high for the USD) before reversing off what was a key support target. If you read the technical commentary on FXL, the 1.17133 area has been touted for a while as a key target to the downside. Not only was the level near the 38.2% of the move up from the December 2016 low, but also near swing lows from November and December 2017. That area held and the price moved up toward the 100 hour MA at 1.1795 (see post) here. The price high reached 1.17945 in the last hour of trading, and is closing the day at 1.1788. That level is the next key barometer for the new trading day.
The GBPUSD fell below the 38.2% of the move up from the January 2017 low and swing levels at 1.3457-67. That break took the price to a new low since December 2017 at 1.3390. The price is closing at 1.3424 after a modest bounce (it was less reactionary compared to the EURUSD's bounce though). For the pair in the new day, the 1.3457-67 was once support. It is now resistance (see chart below).
The USDJPY moved higher to test the 111.47 swing high from mid January. The high reached 111.39 before reversing lower into the NY afternoon session. The pair moved down to test a lower trend line in the last hour of trading at the 111.00 area. That level will be a barometer for the bulls and bears in the new day. Move below, and there should be more corrective momentum after the recent run higher.
The AUD was the strongest currency for the day today, and the AUDUSD was bid for most of the day.
The AUDUSD was given a boost by holding support against its 100 and 200 hour MAs (blue and green lines) and later raced above a topside trend line, the 38.2% of the move down from the April 18th high and swing highs from May at 0.75647. The pair is closing at 0.7581 and should have traders eyeing the 0.75647 as support in the new day.
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