Forex news for NY trading on July 23, 2018
- S&P and Nasdaq up. Dow down in trading today
- The US dollar was back on top today
- China: State researcher says room to cut RRR in H2 - report
- White House says aim of Iran policy is preventing acquisition of nuclear weapons
- BOE's Broadbent says he doesn't know if he will vote for a hike next week
- If it's all about Japan today, that's a big indictment of how manipulated markets are
- UK ministers looking for new powers to block foreign takeovers
- It was all leaked: Does the rise in bond yields make sense now?
- BOE's Broadbent: If inflation pressures weaken after QE reversal, first response will be to cut rates
- Trump said to be telling associates of a 4.8% GDP print for Q2 - report
- European equity close: Soft start to the week
- Mexico said to push for NAFTA deal by the end of August
- US to hold hearings on China tariffs on July 24-25
- Eurozone July advance consumer confidence -0.6 vs -0.7 expected
- US June existing home sales 5.38m vs 5.45m expected
- Theresa May: We are prepared for a no-deal Brexit
- June Chicago Fed national activity index +0.43 vs +0.25 expected
- Canada May wholesale trade sales +1.2% vs +0.7% expected
In other markets today:
- spot gold fell $-7.50 or -0.61% at $1224.50. The rising US dollar helped to undermine the price of the precious metal
- WTI crude oil futures fell $-.45 or -0.66% at $67.81. The full came despite geopolitical concerns between Iran and the US.
- Bitcoin trading up $210 and $7729. The digital currency is also trading above it's 100 day moving average at $7607.65
In the stock market today, European shares closed lower with the Italian FTSE MIB falling the hardest at -0.87%. In the US, results were mixed with the broader indexes rising, and the Dow falling marginally. The NASDAQ rose 0.28% and the S&P index rose 0.18%.
US yields are ending with their 2nd consecutive solid move higher in yields. The yield curve also steepened with the 2-10 spread rising by 2.9 bps on the day.
European 10 year yields ended the session higher as well:
In the forex market, the snapshot at the end of the day has the JPY and the USD as the strongest, while the AUD and NZD were the weakest.
After a couple days of dollar selling, the greenback saw moves back higher. The greenback rose the most vs the AUD and NZD but was also higher vs the EUR, GBP, and CAD. It we close to unchanged vs the CHF and the JPY.
On the data front today, the Chicago National Activity Index was higher at 0.43 vs 0.25 expected.
Not so good, was existing home sales which disappointed on the downside. Higher prices as a result of low demand, weighs on the US home data:
- Inventory at 4.3 months. That is low
- Median price $276,900, up 5.2% y/y. Not too bad
Also helping the dollar - at least vs. the GBP - were comments from BOE Broadbent. He said that if inflation pressures weaken after QE reversal, first response will be to cut rates. He also commented that he does not know if will vote for a hike next week. That sent the GBPUSD to the session lows at 1.3078. However, the price moved back higher when he qualified the comment saying ""he would not say if he did" know. The low for the pair got within 5 pips of the 200 hour MA (see post here).
For the EURUSD today, the pair fell during the US session and reached a new session low at 1.1683. The 38.2% of the move up from last week's low comes in at 1.16824. Staying above it (and the 100 and 200 hour MA's at 1.1664 and 1.1674 respectively), will be more bullish for the pair into the new trading day. A move below will weaken the buyers hand.
For the USDJPY, the pair fell in the early Asian session today, and spent the rest of the day, clawing back the fall. About an hour or so from the close, the price moved to a new session high (completing the down and up lap for the pair). The high reached 111.516. The Asian high reached 111.498. The pair is closing off the highs at 111.347.
The USDCAD rose during the North American session, moving from a session low of 1.3129 to a high of 1.3178. At the high, the pair tested its 200 hour MA at the same level and stalled. The pair is closing at 1.3170. In addition to the 200 hour MA at 1.3178, the 200 hour MA at 1.3194 will be resistance in the new trading day. Get above both levels would be more bullish. Stay below and the sellers remain in control
Like the USDCAD, the NZDUSD was also stalled in the NY session by MA levels. For it, the low today came in at 0.6776. The 100 hour MA was also at 0.6776. The 200 hour MA is at 0.6774. A move below in the new day will be more bearish, but until then, the buyers may just step in and buy with risk defined and limited.
