Forex news for NA trading on July 22, 2020
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- S&P on a 4 day winning streak. Dow on a 3 day streak
- Sen. McConnell: Finds the excuse to not stump for the payroll tax cut
- GOP considering emergency unemployment down to $400 per month
- WTI crude oil futures settle and $41.90
- Biden has a 45%. Trump 44% in Texas poll
- US Democrat Wyden: Won't back short-term jobless aid extension
- US CDC cases 63,028 vs. 57,777 in the last report
- US treasury sells 17 billion of 20 year bonds at a high yield of 1.059%
- Hu Xijin of China Financial Times lobs some warnings to the US way
- Silver continues its surge and tests November 2013 highs
- New York coronavirus statistics show 705 new cases vs. 855 yesterday
- European indices end the session lower on the day
- Arizona Coronavirus cases up 1926 vs. 3500
- French authorities informally told telecom operators they will not renew Huawei
- Florida coronavirus cases rise 9752 vs. 9440 yesterday
- US crude oil inventories +4.892M vs -2.200M estimate
- US existing home sales for June 4.72M vs. 4.75M estimate
- UK spokesperson: UK is not put a specific time frame on trade deal with US
- ECB Lagarde: Mix of grants and loans in EU deal is reasonable
- ECB to extend capital relief, dividend ban for euro zone banks: ECB Sources
- FHFA house price index for May -0.3% vs. +0.3% estimate
- Canada CPI for June +0.8% vs. 0.4% estimate
- The AUD is the strongest and the GBP is the weakest as the NA session begins
The price of silver is trading up $1.67 or 7.77% at $22.96 as investors piling to the cheaper precious metal (Robin Hood traders perhaps). With Gold trading at $1868.14 and up a impressive $26.25 or 1.42%, silver at $22.96 is a huge bargain.
How about this for you Robin Hood traders, the 2011 all-time high for silver reached $49.80. At $22.98 it is still well off the all-time high level. It would take a 117% gain to reach the high.
Comparing and contrasting to the price of gold, its all-time high price in 2011 reached $1921.17. Its high price today extended to $1870.62. That is within $51 of its all-time high price or a gain of 2.7% from the all time high.
Relative to the highs in gold and silver, silver has a lot more room to run. Robin Hood traders who were strong enough to take a bankrupt Hertz from around $0.50 to about $5.50 may like that kind of story, no?
In reality, both have to move together (but silver is relatively cheap). Supply and demand are always a concern, but with the European's focus on "green" initiatives, some are speculating that should lead to increased industrial demand for silver for things like solar panels. HMMMM.
In the forex market, today the CHF was the strongest, while the JPY was the weakest.
The USDCHF moved to the lowest level since March 11. The low price has extended to 0.9286. The lowest close for 2020 came in at 0.92504. The price is within 36 pips of that lowest close level for the year. In 2018, the lowest close came in at 0.9209. The low intraday price for the pair was down at 0.91747.
The USDJPY trended higher moved higher not quite reversing the entire trend move down from yesterday but a good portion of it. The price high on the hourly chart extended up to the underside of a broken trend line and rotated back down into the close. The pair remains above its 100 and 200 hour moving averages and the 107.10 area. The 50% retracement of the range for the week is right around that level as well.
In other markets:
- S&P index rose 18.72 points or 0.57% to 3276.02
- NASDAQ index rose 25.76 points or 0.24% to 10706.12
- Dow rose 165.44 points or 0.62% to 27005.84
- 2 year yield 0.492%, +1.0 basis points
- 5 year 0.2739%, +1.0 basis points
- 10 year 0.597%, -0.2 basis points
- 30 year 1.296%, -1.2 basis points
- WTI crude oil futures for September delivery is trading near unchanged at $41.90
