Forex news for North American trading on May 25, 2021
- US stocks close lower on the day. Dow snaps three day up streak
- Gold tests $1900 for the first time since January 8
- Feds Daly: Sees underlying strength in the economy
- WTI crude oil futures settle at $66.07
- Video: What's next for the Canadian dollar
- U.S. Treasury auctioned off $60 billion of two year notes at a high yield of 0.152%
- Swiss National Bank Jordan: Swiss franc is still strong
- Sen Warner: Crypto crying out for regulation
- Fed's Clarida: US outlook very very positive and could hit 7%
- D.C. Atty. Gen. sues Amazon over online retail pricing
- US new-home sales 863K versus 950K estimate
- US Conference Board consumer confidence for May 117.2 versus 119.0 estimate
- Richmond Fed manufacturing index 18 versus 19 estimate
- ECB Villeroy: Any hypothesis of reduction of QE partly for Q3 is speculative
- Fed's Evans: Recent rise in inflation expectations welcome
- The NZD is the strongest and the JPY is the weakest as NA traders enter for the day
There was modest up and down price action in most currency pairs today. Apart from the GBPUSD, the other major currency pairs versus the US dollar had low to high trading ranges less than the 22 day averages. The strongest of the major currencies today was the EUR, while the weakest was the CAD. However, relatively speaking, the currencies were bunched up.
For the GBPUSD, it traded high into the start of the European session. Fell into negative territory in the US session, before rebounding over the last four or so hours more toward the closing level from yesterday (the pair is trading around 12 pips below the closing level). The pair is settling between its 100 hour moving average at 1.41538 above and its 200 hour MA below at 1.41386. At some point in the new day, one of those levels will be broken. Traders will be hoping that the break is accompanied by increased momentum in the direction of the break. Be aware.
The EURUSD spent most of the day in positive territory, and traded to the highest level since January 7. However after moving back below the high from May at 1.22448 and even the low from yesterday at 1.2229 (the low reached 1.22256), the pair rallied into the close and is trading just above the old May high at 1.22448. That level will be the barometer for the buyers and sellers in the new day. Stay below is more bullish. Move below would be more bearish.
The SNBs Jordan spoke today and said that the CHF was still strong, but that did not stop the USDCHF from moving lower into the close. The high for the pair reached 0.8974 in the NY session, and is trading near 0.8953 going into the close. The swing lows from May (going back to May 18) came in between 0.89531 to 0.89599. The current price at 0.8953 is below that swing area. In the new trading day, watch that area for bias clues. Move above 0.89599, and the bias is more bullish. Being below it now, tilts the bias more to the downside despite the comments from the SNB central banker.
The USDJPY was another currency pair that's all price action down, up and back down again. The initial down in the Asian session, tested the swing low from last week at 108.566 and found willing buyers. The New York session high price at 109.06 tested a cluster of resistance defined by a swing area between 109.029 and 109.074, the 200 hour moving average at 109.033 and the 50% retracement of the May trading range at 109.06. The inability of the price to move area turned buyers and sellers.The pair is trading between the two extremes at 108.753. If the price is to go higher, it needs to get back above the 100 hour moving average at 108.87 and then the 200 hour moving average currently at 109.03. Conversely a move below 108.566, should open the door for further downside.
The USDCAD is trading higher on the day, but has been able to find sellers near its 100 hour moving average currently at 1.2069. Just above that is its 200 hour moving average at 1.20839. The current price is trading at 1.20642 into the close. Until the price can get above its 100 hour moving average and then 200 hour moving average, the sellers are more in control. On the downside, the lows today did stall just ahead of the lows from last Friday at 1.20269 (the low today reach 1.2028)
In other markets.
- Spot gold is trading just below the $1900 level at $1899.80. That is up near $19 or 1%.
- Spot silver is up $0.23 or 0.86% at $28. The hi reach $28.03. The low reach $27.46.
- WTI crude oil futures fell $0.10 or -0.15% $65.95.
In the US stocks, the major indices are closed lower, but the declines were modest. The Dow step day three day win streak. The NASDAQ close 4% below its all-time high. The S&P is just 1% below its all-time high.
European major indices close mixed today with Germany, UK, and France lower. Spain and Italy close modestly higher.
In the US debt market, yields fell (helping gold in the process). The the points were led out the curve with the 10 and 30 year yields down over 4 basis points.
