Forex news for US trading on April 22, 2016:
- US stocks end the day mixed. Nasdaq lags
- CFTC Commitments of Traders: Yen longs increase to the largest long position on record
- The Top 5 events and releases for next week's trading
- GBP/JPY weekly chart traces out reversal
- Oil higher once again despite a tough day for commodities, what's next
- Goldman Sachs sees stronger yen, weaker pound
- Nikkei longs promising, but do you hedge the yen?
- Baker Hughes US oil rig count 343 vs 351 prior
- USDCAD making a comeback
- USDJPY on its way to the biggest daily gain since the BOJ went negative on rates
- Down on the day but up for the week, that's the story for most at the European close
- Here's why BNPP likes a yen short into the BOJ
- April 2016 US Markit manufacturing PMI flash 50.8 vs 52.0 exp
- No one thinks the FOMC will hike in April
- Draghi hits the quill and parchment
- USD/CAD falls on strong Canadian consumer spending and inflation
- Canada March CPI +1.3% y/y vs +1.2% expected
- February 2016 Canadian retail sales 0.4% vs -0.8% exp m/m
- BOE would have to carefully weigh negative rate impact says Vlieghe
The USDJPY was the big mover today as reports of further BOJ easing at next weeks meeting weakened the currency against all the major currency pairs For the day, the pair moved up 223 pips from yesterday's close. The NY session tacked on about 1/2 of that gain. The move above the 111.00 key resistance saw buyers enter and push the pair to the day's high/+80 pips.
The dollar also gained smartly against the EUR. The EURUSD was weaker after slightly weaker than expected PMI data in the London morning session. With weaker US stocks, the pair fell further in the North American session. The fall took the price below neckline support on a head and shoulder formation at 1.1259 and this helped to downward bias.
While the EUR and the JPY weakened against the USD, the GBP strengthened against the greenback. The big influencer was the EURGBP which trended lower - trading at the lowest level in a month. Obama was in London visiting with PM David Cameron and he actually helped the GBP with comments in support of no Brexit.
The USDCAD had center stage during the release time at 8:30 AM ET with retail sales and CPI released and no competing US data. Both came out better than expectations and the USDCAD fell about 100 basis points by the time the selling was over. The pair recovered nearly the entire move lower at the end of the London trading day. However, the momentum faded and the pair settling back down near the middle of the NY trading range.
The other commodity pairs - the AUDUSD and the NZDUSD - weakened. The RBNZ will announce their rate intentions next week and despite a 217 pips rally into the close on Tuesday, that entire move higher was chipped away on Wednesday, Thursday and again today. The low today was more or less in line with the low on Monday. A lap complete in the NZDUSD. The AUDUSD fell below support at the 0.7722-36 area and fell to a low of 0.7693 before consolidating a touch higher into the close.
Below is a snapshot of the the strongest and weakest in trading today.
Have a great weekend to all.
