Forex news for US trading on August 29, 2016
- US stock close higher but off the highs
- Forex trading: How does the buy NZDUSD trade look technically?
- Crude oil futures settle at $46.98
- Dollar weakness creeps into the market
- The top 5 events releases for the week
- The paradigm shift on fiscal spending could flip the inflation switch
- Credit Suisse trade of the week: Buy NZD/USD
- Trouble brewing on the EU-US tax front
- Atlanta Fed GDPNow forecast rises to 3.5% from 3.4%
- Iraq to start talks with Kurds on boosting oil output
- European stocks end lower on the day
- No change in our Fed call after Yellen's speech; still see a December hike - Nomura
- Dallas Fed Manufacturing index lower in August at -6.2 vs -1.3 last month
- Markets are sending mixed signals on the Fed
- Canada Nanos weekly economic mood index 59.3 vs 59.9 prior
- US dollar unmoved by PCE data as market continues to digest Fed talk
- Forex technical analysis: GBPUSD trading near MA/50% retracement
- US PCE core for July +0.1% vs 0.1% estimate.
- US personal income for July 0.4% vs. +0.4% est. Spending 0.3% vs. +0.3% est
- The strongest and weakest currencies as NA traders enter for the day
It was a banking holiday in the UK today, so activity was influenced by the traders who were absent (if they are not there, they can't trade).
Nevertheless, there was a pretty good move lower in bond yields today (US yields down about 7 basis points) and that helped to contribute to an afternoon fall in the US dollar. That fall helped to erase modest earlier gains in the greenback on the back of follow through buying after last Friday's Fed headlines (from Yellen, to Bullard to Fischer, to Meister, etc.). That was then. This is now. The "now" may actually be a look ahead to the next big Friday event - the US employment report.
I know.... "Say it isn't so! Not another week of waiting for Friday."
It might just be. But there is good news ahead as summer will be over after next Monday's Labor Day holiday in the US. Perhaps we can build on some new trend moves at that time. We will see....
As for today, most of the USD pairs are ending the day near unchanged levels.
The EURUSD is down about 9 pips from Friday's close (at 1.1187), but 30 pips off the lows at 1.1157. Technically, the pair bottomed near lows form August 15th and swing lows and highs going back to July 29th between the 1.1153-59 area. That area was a dividing line between bullish and bearish and buyers leaned against it in trading today.
The USDJPY looked to be supported in the NY session at the 102.10 level after continuing the pairs rally in Asian Pacific session on Kuroda's weekend comments. However, that level gave way and the buyers turned to sellers. Remember...liquidity conditions are low. That seemed to be an influence in trading for this pair.
The GBPUSD opened the NY session at the lows. Moreover it was trading above and below the 100 bar MA on the 4 hour chart at 1.3070 area. Could the sellers take the pair further down? Nope. Traders started to lean more against the aforementioned MA, and like the other pairs, a lowering of the dollar started to feed an upside move. The pair is still ending down about 30 pips on the day, but that is better then down about 72 pips at the lows.
Japan Unemployment, Household spending and Retails sales will be out in the new trading day. In the European market, the German CPI and Import prices along with Swiss KOF economic barometer. Italy retail sales and Spanish Flash CPI will also be released.
