Forex news for NY trading on July 5, 2018
- Big day for the Nasdaq. Trade tariffs and US employment tomorrow.
- Scott Pruitt, embattled EPA administrator, resigns
- Crude oil futures settle down -$1.20 at $72.94
- FOMC meeting minutes: Saw intensified risks around trade policy
- Iran's OPEC Governor: Oil prices above $100 is yet to come and Trump is the one to blame
- On the agenda for upcoming NATO and Trump/Putin meetings
- European stocks close higher on trade hope
- Saudi Arabia has pumped 10.448B BPD in June
- Brexit plan will not block trade deal with the US: PM May spokesman
- EIA crude oil inventory shows a build of 1245K vs -5000K expected
- June ISM non-manufacturing 59.1 vs 58.3 expected
- USTR confirms China tariffs scheduled to start at midnight
- US final June Markit services PMI 56.5 vs 56.5 expected
- Germany said to regard May's Brexit plan as unworkable
- Initial jobless claims 231K vs 225K expected
- US June ADP employment +177K vs +190K expected
- The EUR is the strongest. The JPY is the weakest as NA trader enter
In other markets near the end of day shows:
- Gold up $2 to $1256.69
- WTI crude down -$1.00 or -1.44% at $73.07.
- S&P rose 0.86%
- Dow rose 0.75%
- Nasdaq rose 1.12%
- 2 year up 2.8 bps to 2.5527. 10 year up 0.3 bps to 2.8345%, 30 year 2.947%, down -1 bp
The USD ended the day mixed with declines vs the EUR and NZD, modest gains vs the JPY, GBP and CHF and near unchanged vs the CAD and AUD.
The weakest currency was the JPY. Stronger gains stock gains in Europe (Dax up 1.19%, Cac up 0.86% and UK FTSE up 0.4%) and US (Nasdaq up 1.12%) helped to weaken the JPY on risk off flows.
Having said that, the USDJPY spent most of the US day trading above and below the 100 hour MA at 110.65 (where the pair is trading now).
On the news front today, the ADP job gains came in a little weaker than expectations at 177K vs 190K expected, but the prior month was revised higher. Initial claims were also a little weaker at 231K vs 225k expectations.
Later the ISM non-manufacturing came out better than expectations at 59.2 vs 58.3 expected. The employment component did fall, but new orders rose. Recall that earlier this week, the ISM Manufacturing also came in quite solid at 60.2. vs. 58.5.
Overall, the data was not bad today (or recently) but the market is more focused on the US employment report due tomorrow at 8:30 AM et.
The forex market did finds some price action movement from a report the German's did not think UK PM May's Brexit plan was workable. That send the GBPUSD down to support in the 1.3203-16 area where support buyers leaned on the test. The fall, took back all the gains seen earlier in the trading day.
Later in the afternoon, the Fed minutes from the June meeting confirmed the Fed is on a hike path but that there are more risks in the economy from trade. Nevertheless, they expect to reach a neutral policy level in 2019.
