Forex news for forex trading on July 30, 2018.
- The Nasdaq stocks continue to slide. Banks outperform.
- Bitcoin moves back below $8000 level (again), but recovering.
- US crude oil futures settle at $70.13
- Trump again threaten shutdown if no border wall but sees room for negotiations
- Trump meets with Italy's PM Conte. We'll figure out $31B deficit w/Italy
- European major stock indices end the session mostly lower.
- Odds of a BOE hike Wednesday sit at 90%
- US dollar longs are the most-crowded since early 2017
- Mark Carney strikes an optimistic tone in Bloomberg interview but warns on trade
- Wilbur Ross says the trade deal that's closest to completion is NAFTA
- US June pending home sales +0.9% vs +0.2% expected
- Here's the easiest, cheapest thing you can do trade better
- Amex ripping off customers is another black eye for foreign exchange
- The NZD is the strongest and the AUD is the weakest as NA traders enter
In other markets:
- Spot gold is trading down -$1.55 or -0.13% at $1221.70
- WTI crude oil is trading up $1.30 or 1.89% at $70.00
- Bitcoin moved lower in trading and is down $-65 at $8127.39. For a technical look CLICK HERE.
US stocks closed lower on the day with tech heavy Nasdaq the hardest hit. In Europe, the major indices also closed lower.
In the US debt market, yields moved mostly higher with a steeper yield curve. This helped the financial stocks.
In the forex market, a snapshot of the major pairs near the end of the day is showing the CHF is the strongest. The JPY is ending as the weakest. Below is a graphical look at the major currencies and the % changes of the pair against each other.
How did the USD do today?
The dollar in the NY session moved lower from the opening levels. However, the major currencies vs the USD is also closing off the lowest levels (see chart below). The only currency that the dollar rose against was the JPY. The BOJ will end their 2-day meeting today. There were some reports that they might look to slow some of the stimulus. The USDJPY only had a 28 pip trading range on the day - perhaps waiting for more direction from the central bank in the new day.
The USDCHF took it on the chin today. As reported in an earlier post, the pair moved below a trend line on the daily chart at 0.9901 level. Stay below that level and the narrow trading range of 210 pips would be extended. The low for the month reached 0.9857. That is the next target to get to and through.
The EURUSD moved above the 200 and 100 hour MA in the London morning session at 1.16766 and 1.16796 respectively. The price in the NY session stayed above those levels and moved higher. The peak for the day stalled at 1.17175. That took the price above the 61.8% of the move down from last week's trading range at 1.16998 (call it 1.1700). In the new day, unless, the price goes below the MA levels outlined above, the buyers are still in control.
The BOE are expected to raise rates on Thursday. Although the Fed meets this week as well, they ARE NOT, expected to announce a rate change (they will likely say they will raise in September, however). Does that give a nod to GBP buyers? Today, the price did move higher, but the gains were still limited. The price did move above and away from the 200 hour MA at 1.31076, but a move above the higher 100 hour MA at 1.31377, ran out of steam. The pair is closing below that MA level. In the new day, look for support buyers against the 200 hour MA at 1.31076 (and moving higher). Getting back above the 100 hour MA at 1.31377, should attract more buying.
We are day closer to the BOJ on Tuesday, the Fed on Wednesday and the BOE on Thursday. After that, the US employment will end the week on Friday. PS Apple earnings after the close tomorrow. It will go a long way to finding a bottom or moving more to the downside.
