Forex News for US trading on June 7, 2016
- US major indices end the day mixed. Marginally changed
- Morgan Stanley says RBNZ is skewed to cut
- US Consumer credit for April 13.416B vs 18B estimate
- For good order..The European major indices end the day higher
- Forex technical analysis: Has the EURJPY hit it's bottom
- Forex trading video: Trade the GBPUSD with caution. Where are the extremes.
- ECB's Knot says low interest rates are a cause of stability risk
- 10 year Bund yield falls to record lows
- May 2016 Canadian Ivey PMI 49.4 vs 51.5 exp
- June 2016 US IBD TIPP economic optimism 48.2 vs 48.2 exp
- Q1 2016 US unit labour costs final 4.5% vs 4.0% exp
- Webinar this Thursday, June 9th: "How to increase your trust in your forex trading"
Today was a day that saw the GBPUSD race up nearly 200 pips in a matter of seconds (fat fingers for algo gone mad). That scared the heck out of the market it seems.
Some currency pairs barely moved (EURUSD had a 42 pip range while the USDJPY range was a relatively small 75 pips).
Others moved nicely for the day. For example, the AUDUSD and NZDUSD rose smartly for the day, but most of the move occurred during the Asian Pacific session.
Economically today, the US Q1 productivity fell by -0.6% which was as expected. The IBD TIPP economic optimism came in as expected. In Canada the IVEY PMI was weaker than estimates but the CAD rose on the back of higher oil prices (moved above the $50/bbl and looks to test the October high. US stock indices were mixed.
EURUSD. 42 pips total range. 68 pips for the week. The pair trading above and below the level I have been looking for the pair to move away from this week. That is the 50% of the move down from the May high. That comes in at 1.1356 and give or take a few, the price moved above and below that level about 20 times today. What does that say to me? The "market" is unsure of the directional bias for this pair. In comments over the last few days, I have seen bears and bulls - each sounds convinced they are right. SO the battle is on. Looking for one or the other to take charge and move and stay "moved away" from the 1.1356 level. The range will be extended this week.
The USDJPY moved lower in NY trading and made new day lows. In the process it fell below an area of that was swing highs and lows going back to April (the 107.48-65 area). Stay below is more bearish in the new day. Move above it and traders might look toward of a test of the 108.00 level. A break of that opens more bullish doors.
I produced a video today on the GBPUSD (you can find it HERE). The pair is within a wide range between the 100 day MA below at 1.4347 and the 200 day MA above at 1.4733. Yes 400 pips but with the volatility from Brexit, that is what you get. In between is the 200 hour MA which comes in at 1.4524 and has been a nice barometer for bullish and bearish moves. We are ending the day near that level . Traders with a view can lean against it - if bullish. Or sell on a break through it - if bearish.
The RBA was less dovish and that gave the pair the power move forward - and pushed the price away from the 100 day MA. The rally continued in the NY session and the pair is working it's way to the 50% of the move down from the April high at the 0.7489 level. The NZDUSD also moved higher even though the RBNZ may cut rates tomorrow. HMMMM. Does that make sense? USDCAD was lower on the back of higher oil prices. The pair was reluctant to take out London lows even though oil was heading higher, but took out lows by the end of the trading day. So going out at the lows.
Good fortune with your trading....
