Forex news for NA trading on June 22, 2020.
- NASDAQ closes at a new all time record level
- Trump Administration: US to suspend certain work visas. Moves will open up 525K jobs
- Texas governor says virus spreading at unacceptable rate
- WTI crude oil futures closes above $40 per barrel for the 1st time since March 6
- Pres. Trump told Mnuchin to "go after Bitcoin" according to Bolton's book
- US CDC reports 27,616 new coronavirus cases vs 34,284 a day earlier
- Outlines of +$1 trillion US stimulus taking shape - report
- BOC's Macklem: Exit from asset purchase program is a long way off
- Fed's Rosengren: We need to keep rates low at the short and long end
- Trump backs second stimulus cheque in stimulus package
- California COVID-19 cases 4230 vs 4515 a day ago
- Macklem Q&A: Says watching real estate market closely
- European major indices end the session in the red
- Arizona reports 2196 new coronavirus cases vs 2592 on Sunday
- BOC Macklem: Negative rates could lead to distortions
- EU Pres Von Der Leyen: We have not made progress with China on trade
- ECB's De Guindos: We will continually evaluate PEPP
- Florida COVID-19 cases +3.0% vs 3.7% seven-day average
- US May existing home sales 3.91m vs 4.09m expected
- Eurozone June advance consumer confidence -14.7 vs -15.0 expected
- Kudlow: Stimulus deal 'highly likely' this summer but size undetermined
- Chicago Fed national activity index +2.61 vs -16.74 prior
- The NZD is the strongest and the JPY is the weakest as NA traders enter for the day
Markets:
- Spot gold is trading up $12.18 or 0.70% at $1756.05. The high price reached $1763.38. The low extended to $1742.46. The price is closing its highest level since October 2012
- WTI crude oil for July are trading up $0.71 or 1.79% at $40.46. The August contract is also above the $40 level. It rose by $0.82 or 2.06% at $40.65. Hopes for a recovery are helping to push up the price
In the US debt market, yields are marginally higher. The biggest mover is the 10 year which is up 1.6 basis points. Below are the ranges for the major yield curve maturity periods:
Traders continued the run into US stocks – especially the tech heavy NASDAQ which closed higher for the 7th consecutive day (the longest streak in 2020). The major indices all closed near their highs for the session. The NASDAQ index was the biggest gainer, :and also closed at a new all time high of 10056.42. The final numbers are showing
- S&P 500 +51.3 points or 1.68% at the 3110.70
- Nasdaq rose by 110.35 points or 1.11% at 10056.42
- Dow rose by 153.5 points or 0.59% at 26024.96
In the European equity markets the major indices close lower on the day and well off the highs as well.
IN the forex market, the NZD was the strongest and the JPY was the weakest. The order of the strongest to weakest remain the same throughout the entire New York session. The AUD was the 2nd strongest as investors flocked in to the "riskier" currencies. The USD was the 2nd weakest as investors fled the relative safety of the JPY and the USD.
Coronavirus news in the US showed a slowing of the cases. This typically happens on Monday. Nevertheless, Arizona, Florida, California showed a slower growth. The Texas governor however said that the virus is spreading at an unacceptable pace. That headline helped to push stocks down but only briefly as they quickly recouped losses and closed near their highs for the day.
The existing home sales were as the biggest economic release today. It showed a self-paced 3.91 million vs. 4.09 million expected. The sales pace was the lowest since 2010. Nevertheless the National Association of Realtors economist said that "Home sales will surely rise in the upcoming months with the economy reopening, and could even surpass one-year-ago figures in the second half of the year."
A look at some of the major currencies from a technical perspective are showing:
- EURUSD: The EURUSD trended higher on the day but ran into resistance near a downward sloping trendline, and the falling 200 hour moving average. The trendline currently comes in at 1.1264. The 200 hour moving average comes in at 1.1268. The pair is currently trading at 1.1265 just below the close for the day. In the new trading day a move above those targets would be more bullish for the pair with the 50% retracement of the move down from the June high at 1.12942 being the next major target. Staying below the 200 hour moving average should see a rotation back to down toward the 100 hour moving average at 1.12267.
- GBPUSD: The GBPUSD open the day at session lows at 1.2334. That was the lowest level since June 1. The pair March higher from that low ultimately reaching the 38.2% retracement at 1.24689 and its 100 hour moving average right around that level. The high price for the day 1.2463. We currently trading at 1.24672 into the close. If the price is going higher in the new trading day getting and staying above the 100 hour moving average/38.2% retracement would be needed. The next target comes in against the 100 day moving average at 1.2501 (call 1.2500). The 50% retracement of the move down from the June 16 high (last week's high) is near that level I.25105. Failure to extend above the 100 hour moving average/38.2% retracement would have traders buying a move below the 1.2453 – 55 area (swing low from June 15 and swing hi from June 19), and then target the 1.2433 swing high from earlier in the day
