Forex news for NY trading on July 24, 2018
- And that's it for stocks today. Major indices end mixed.
- Australia CPI to be released in the new day. What levels in the AUDUSD should traders eye.
- Earnings after the close and scheduled for the rest of the week.
- Crude oil settles at $68.52 as the bulls and bears are battle.
- USDA outlines programs for farmer aid
- Trump says farmers impacted by tariffs to be patient
- US sells 2-year notes at 2.657% vs 2.656% WI
- EU stock indices end day with solid gains
- UK Brexit Minister(?) Raab: Challenge to have full framework w/EU
- New York Fed says North America FX volume up 11.7% y/y
- IMF: Staff estimates USD overvalued by 8% to 16%
- US July Richmond Fed manufacturing index +20 vs +18 expected
- Theresa May says she will take control of Brexit negotiations
- US July prelim Markit manufacturing PMI 55.5 vs 55.1 expected
- Mexico's incoming NAFTA negotiator expects conclusion in next few months
- US May FHFA house price index +0.2% vs +0.3% expected
- Bitcoin bullish run continues. Trades above $8000 and eyes 200 day MA
- Philly Fed non-manufacturing 44.3 vs 39.1 prior
- The AUD is the strongest while the CHF is the weakest
In other markets today, an end of day snapshot is showing:
- Spot gold is little changed today at $1225.03 (up $0.54). The high reached $1229.60. The low extended to $1218.20
- WTI crude oil is up $0.77 or 1.18% at $68.70
In the Europe and US stock markets today, most of the major indices closed higher with the Italian FTSE MIB up 1.25% and German Dax up 1.12%, leading the way in Europe. In the US, the Dow advanced 0.79% but the Nasdaq ended down the minimum of -0.01%.
US yields are ending the session mixed after moving higher earlier. The 10 year yield fell short of the 3.0% level - reaching 2.9708% before backing off.
In Europe, 10 year yields ended mixed on the day:
I haven't highlighted bitcoin on the wrap in a while but the digital currency was up $519 on the day at $8225. That is a gain on the day of 6.7%. That beat the heck out of Alphabet which was only up 3.53% on the day.
Since the low on June 24th, the price is up $2448 or 42.4%. Wow! Here we go again. There are reports that the Securities and Exchange Commission may make a decision as soon as August on a Bitcoin ETF.
Technically, the price moved further away from the 100 day MA at $7606.66 (closed above yesterday for the first time since May 10th). The next target comes in at 200 day MA at $8666.74. The price has not traded above that MA since March 14th, 2018.
Happy days are here again for Bitcoin investors (see post from earlier in the day HERE and a post done last week outlining some of the technicals that started and has helped drive the digital currency higher - CLICK HERE).
In the plain old forex market we all love and know, the AUD is ending as the strongest ahead of CPI data for 2Q which will be released in the new trading day. (for a look at key levels in play through that report CLICK HERE). The CHF is the weakest.
The USD is ending the session mostly lower (but mixed). It is down vs. the GBP, AUD, NZD JPY and CAD, and up against the EUR and CHF.
There was not a heck of a lot of news of influence:
- FHFA house price index rose 0.2% vs 0.3% expected
- Markit PMI data was mixed with the Manufacturing a bit higher than expected at 55.5 vs 55.1, but the Services lower at 56.2 vs 56.3.
- Richmond Fed Manufacturing index was higher at 20 vs 18 expected but lower vs the revised last month level of 21.
The US auctioned $34B of 2 year notes.
The President (and FDA) announced a $12b subsidy for farmer hurt by the tariffs from China.
The market looks to the meeting with Euro officials (Juncker) and the President tomorrow. Ahead of it the President said "Tariffs are the greatest!" and warned that unless there was a fair deal, more would be coming. An EU official said that the EU wanted the US to take back steel and aluminum tariffs. Oh my, I can only imagine might go on at the meetings tomorrow.
Some technical levels to eye in the new trading day:
- The EURUSD stalled the fall at the converged 100 and 200 hour MA at 1.6755 in the US afternoon. Key risk and bias defining level into the new trading day for that pair.
- The GBPUSD moved above its 200 hour MA at 1.13309 in the morning US session and stayed above it for the rest of the day. The high did stall at the 50% retracement of the July trading range at 1.3158. So the pair ping pongs between support at 1.31309 (200 hour MA) and the 50% at 1.31583.
- The USDJPY traded in a channel for the day on the hourly chart. The topside trend line comes in at 111.34. The lower trend line cuts across at 110.91.
Wishing you all a great new day, evening, night....and good fortune with your trading.
