Forex news for Americas trading on September 26. 2019.
- Fed's Barkin says recent FOMC cuts do not mean Fed in a prolonged easing period
- US stocks suffer and close lower on the day
- Chinese foreign minister Yi: China is willing to buy more US goods
- Bitcoin stumbles... and then falls. Bearish. Price moves below and away from key MA level.
- Fed's Kashkari (dove): Outlook for US economy is mixed
- Bank of Mexico cuts rate to 7.75% from 8%
- US sells $32 billion 7 year note at high yield of 1.633%
- Pompeo: Syria used chlorine as a chemical weapon on May 19
- ECB Lange in Handelsblatt: Experiencing temporary weakness in the economy
- More Kudlow: US will not impose auto tariffs on Japan as long as goodwill progresses
- Feds Clarida speak at a Fed Listens event
- White House economic advisor Kudlow: China moves in have been very positive
- European shares end the trading session higher
- UN nuclear watchdog: Iran raises rate of enriched uranium accumulation
- US stock markets slip after report says US unlikely to extend Huawei waiver
- KC Fed manufacturing index -2 vs -4 expected
- US August pending home sales +1.6% vs +1.0% expected
- Fed's Kaplan: Aging of the workforce a key issue for GDP growth
- UK parliament vote against adjourning parliament until Oct 3 for Conservative conference
- US House Intel publishes whistleblower complaint on Trump's Ukraine call
- US August prelim wholesale inventories +0.4% vs +0.1% expected
- US initial jobless claims 213K vs 212K estimate
- US advance goods trade balance for August $-72.8 billion billion versus $-73.4 billion estimate
- US Q2 GDP third reading 2.0% vs 2.0% expected
- The NZD is the strongest and the CHF is the weakest as NA traders enter for the day
In other markets:
- Spot Gold is trading up $1.70 or 0.11% at $1505.65
- WTI crude oil futures are trading near unchanged levels at $56.53
- Bitcoin on Coinbase is trading down $381.19 at $8128.59. It's 200 day moving average is currently at $8318.32. Stay below that level and the bears remain in control (see post here)
The EURUSD moved to new lows not once, not twice but three times today. The first low took out the early September low of 1.09236 by a few pips to 1.0919 and bounced. The 2nd new low reached 1.09213 and bounce. The final break has moved to 1.0908. We currently trade below the prior lows at 1.0919. If the price can stay below the September 12 low at 1.09263, that would keep the sellers firmly in control. A move above, and traders will be raising an eyebrow to the break today PS. the lows today made new lows going back to May 12, 2017.
The EURUSD was not the weakest curency of the day. The GBP was weaker (compared to the majors), but it was not far behind that currency for the weakest (see chart below).
The strongest curency of the day today was the NZD. However, the gains in that currency pair were reduced in the NY session as pairs like the NZDUSD corrected.
For the NZDUSD, the pair corrected higher on the day (it was close to the years low just yesterday) and in the process moved for the 2nd day this week, above its falling 200 hour MA. That should have been bullish. However, in the NY afternoon session the price dipped back below the MA at the 0.63065 currently. The price has stayed below that level. The price is also moving back below the 100 hour MA at 0.6294. So the buyers snatched defeat from what seemed to the be the jaws of victory today.
The pound remains under pressure as politics and Brexit remain front and center, and each is not instilling much confidence in GBP buyers. For the GBPUSD, the high for the day stalled just ahead of a topside swing area in the 1.23815 to 917 area. The price fell and is closing near 1.2320 area. IF the pair is to go higher, that area would need to be rebroken (BULLISH above) BEARISH below - see chart below).
In other markets today, the US major indices were some of the weakest globally. The Russell 2000 of small cap stocks were the worst performers. The Nasdaq, Dow and S&P were also down on the day. On the topside, the UK FTSE, Italy FTSE MIB and France's CAC were the big gainers.
In the US debt market today, yields were lower but off the lowest levels. The 2-10 yield curve spread narrowed.
In other news:
- The transcript from the Ukraine whistleblower was released. Depending on your slant, it is either the final straw for Pres. Trump or just another witch hunt. You can read it here.
- US 2nd Q GDP came in at 2%. Old news.
- Jobless claims are stuck around the low 212K level, Job picture still strong.
- Goods trade balance remains solidly in deficit despite tariffs and Trump administrations trade focus.
- Feds speakers said much of the same thing, although the dove Kashkari kept to his dovish storyline. Although not a voting member, he wanted 50 bp cut at the last meeting.
