Forex news for New York trading on June 5, 2018
- US major stock indices close with mixed results
- World bank lifts estimates for US GDP growth, but warns of risk to global economy
- G7 leaders to call on N. Korea to deliver complete denuclearisation
- 85 years ago today, gold and US dollar traders got a jolt
- Cable climbs above 1.34 to 10-day high
- ECB's Weidmann: Italy market turmoil shows currency union not yet crisis proof
- Canada gov't official. NAFTA is a trilateral agreement. Will continue to negotiate.
- Bipartisan Senate bill coming to force Trump to get approval for tariffs
- EURUSD ticks higher after ECB said to set June 14 as a "live meeting"
- ECB said to see June 14 as live meeting to debate QE exit - report
- Italy lags at the European equity close
- EU official says doesn't expect G7 breakthrough on trade issues
- US April JOLTS job openings 6698K vs 6350K expected
- May US ISM non-manufacturing index 58.6 vs 57.6 expected
- US May Markit final services PMI 56.8 vs 55.7 expected
- The US has asked some OPEC producers to raise output - report
- Canada Q1 labor productivity -0.3% vs +0.2% prior
- The GBP is the strongest. The AUD is the weakest as NA traders enter
in other markets:
- Spot gold rose $4.75 or 0.37% at $1296.76
- WTI crude oil is trading up $0.50 or 0.77% at $65.24.
- Bitcoin is trading up about $92 at $7619 on Coinbase. The digital currency was able to extend back above the 200 and 100 hour MAs at $7485 and $7575 respectively. The volatility remains somewhat limited with only a $324 trading range.
- S&P was up marginally at +0.07%. Nasdaq stocks were up 0.41%. The Dow fell -0.06%. The Nasdaq closed at a new record and also traded to a new record high in trading today.
- US yields were lower with the yield curve flattening by a basis point or two. 2 year 2.491%, down -2.4 bps. 10 year 2.924%, down -1.8 bps. 30 year 3.08%, down -0.4 bps.
In the forex market today, the clear winner (strongest) was the GBP. The biggest loser was the AUD. The USD was mixed despite a string of better data in the US.
The data today showed stronger than expected services PMI data, stronger non-manufacturing ISM data and some further strong jobs data. More specifically:
- Markit services PMI rose to 56.8 from 55.7 last month
- US Non Manufacturing ISM rose to 58.6 from 56.8
- The JOLT Job Openings surged to a record number of 6698K. There are now more jobs, than those looking for work in the US. The problem is the qualifications for the jobs are too high for the pool of workers looking. Nevertheless, it should keep the pressure on the wages.
The data did help the dollar at least for a little while but honestly, the gains were limited.
The EURUSD fell toward support at swing lows from Friday (and the low from Monday) and the 38.2% retracement at the 1.1652 level and 1.1654 respectively. Support did hold and the dollar buyers started to cover. Helping the recovery later, was some headline news that the June ECB meeting would be "live" for a potential change in QE. That sent the EURUSD moving back higher (and the EUR pairs as well). When it was all over, the EURUSD moved up to test the 100 bar MA on the 4-hour chart at the 1.1730, before rotating a bit lower into the close.
For a technical look into the new day for the EURUSD, click on the following video link. The technical support is clearly defined. The technical resistance is clearly defined. Find out the levels by watching the video below.
For other pairs:
- The GBPUSD rode UK data higher but came off on the better US data. Later in the day, the pair rode the EURUSD move upside and traded to the highest level since May 24th. The pair moved above the 100 bar MA on the 4-hour chart for the first time since April 19th at 1.33898 and up to the 50% midpoint of the move down from the May 10th high at 1.3410. The price rotated lower into the close and is ending the day near the 100 bar MA 1.33898. In the new day, that MA will be a barometer for the bulls and the bears.
- The USDJPY had its share of ups and downs today but at the low the price successfully held the 200 bar MA on the 4-hour chart for the 2nd consecutive day. That MA comes in at 109.49 currently. The move higher into the close, stalled just ahead of the 100 bar MA on the 4-hour chart at 109.843. For the day the ups and downs ended the day nearly unchanged. Traders will look for break above the 100 bar MA at 109.843 or a break below the 200 bar MA at 109.49 for the next bias clue. Until then, expect more up and down trading.
