Forex news for near trading on April 22, 2020
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- Stocks have a recovery day. Broad indices up over 2.2%.
- Senate Majority Leader McConnell: State aid should be limited to virus issues
- ECB takes steps to steps to mitigate impact of possible ratings downgrades
- US crude oil futures settle at $13.78
- CDC US total cases 802,583 vs 776,093
- France coronavirus statistics for April 22
- Italy cases rise to 187,327 versus 183,957 yesterday
- NY virus deaths rise to 15,302 up from 14,828
- European shares rebound in trading today
- At least 25,000 more people have died from COVID-19 than reported - NYT
- US weekly crude oil inventories +15.022m vs +14.4m expected
- April advance eurozone consumer confidence -22.7 vs -20.0 expected
- US February FHFA house price index +0.7% vs +0.3% expected
- Canada March CPI +0.9% y/y vs +1.1% expected
- The AUD is the strongest and the USD is the weakest as the NA session begins
- Trump instructs navy to destroy Iranian gunboats if they harass US ships
- ForexLive European FX news wrap: Dollar down on calmer markets
It was a recovery day for markets today.
- Spot gold fell by about $11 yesterday. Today it is up $30.52 or 1.81% at $1716.63
- WTI crude oil futures for June delivery was down about $7.38 yesterday. Today the contract prices up $2.54 or 21.78% at $14.09.
In the US debt market, 10 year yields were down -4.25 basis points at 0.56%. Currently the 10 year yield is up 4.68 basis points to 0.6159%. The yield curve also rebounded today with the 2 – 10 year spread rising from 36.57 basis points to 40.26 basis points today.
In the US stock market, yesterday the S&P index fell 86 points or -3.1% and had its largest decline in 3 weeks. Today the S&P index rose 2.29% and close just below the 2800 level at 2799.31. The NASDAQ index outperformed rising by 2.81%. The Dow industrial average gained about 2%. Below are the percentage changes of the major indices in North America and Europe:
In the forex market, the US dollar was 1 of the weakest of the major currencies throughout most of the trading day. It is still ending lower overall on the day, but with more mixed results. The dollar gained against the EUR, CHF and NZD after being down against those currencies at the start of the day. The dollar fell against the GBP, AUD, CAD, and JPY.
The EURUSD started the day at the highs at 1.08847, but when the price momentum stalled and reversed back below its 100 hour MA at 1.0857, the buyers turned to sellers. The selling did not stop until after breaking below the 5 day low floor at 1.0811-16 and falling to an intraday low at 1.08026 - just above the natural support at 1.0800. The price is trading up at 1.0821 into the close. Traders – looking for more downside – would like to see a move back below the 1.0811 level, to give more confidence for more bearish momentum. Failure to do that we could see a rotation back toward a retest of the 100 hour moving average currently at 1.0854.
The USDJPY is closing near unchanged levels for the day, but saw the price move up down up and back down again in a confined 42 pip trading range (the 21 day averages 97 pips). For the New York session, the price open the session below its 100 and 200 hour moving averages. The low came in at 107.59. In the New York morning session both the 100 and 200 day moving averages currently at 107.67 area, were breached and the price moved to an intraday high at 107.93. At the high, a topside trend line was approached at 107.96, but sellers leaned against the level. Selling was reestablished and the price settled back down toward the dual moving averages into the close. We are currently trading at 107.72 just above the aforementioned moving averages. In the new day treasure likely to use the moving averages as a barometer for the bulls and bears. Stay above is more bullish. A move below would tilt the bias back to the downside.
The GBPUSD opened the New York session with the price extending up to the days high at 1.23833.. The rest of the session was spent rotating to the downside. The low price for the day came in at 1.2299 (call at 1.2300). That low tested a trendline on the hourly chart connecting the low from yesterday with the earlier Asian session low. Into the new day a move below the 1.2300 level will need to be broken to solicit more downside momentum. On the upside, a downward sloping trendline cuts across at 1.2363. Any move above that level will have traders looking toward the falling 100 hour moving average at 1.24066.
The USDCAD moved lower (higher CAD) as it was helped by rising oil prices (or so it seemed). However once its 100 hour moving average was reached at 1.41176, the sellers turned buyers and the price rotated back higher. The high price in the New York session reach 1.41945 – just ahead of the natural 1.4200 level. Into the close, the price is rotating back to the downside and currently trades at 1.4160.
