Forex news for NY trading on May 7, 2018
- Fed's Kaplan: Very concerned about quant or machine driven trading
- US stocks end with gains to start the week, but off session highs
- Mexico's Guajardo: NAFTA talks are advancing
- Bitcoin recovering from the weekend Buffet bashing.
- Fed's Evans: Structural change may create inflation headwinds
- Q&A Fed's Barkin: that is reasonably comfortable that reduction of BS is working
- US consumer credit for March $11.622B vs $16.00B expected
- Trump to announce Iran nuclear deal decision Tuesday at 2 PM ET
- White House: China's top economic advisor will come to Washington next week
- Fed's Barkin: US economy still on a good growth trajectory
- Italy's head of 5-star movement says elections must be held in July
- GBPUSD gets close to 100 hour MA and backs off
- ECB Smets: ECB could take steps to phase out QE this summer
- Italy's Pres. Mattarella: Meetings today showed there was no chance to form a political government
- What does the snapshot of currencies look like at midday?
- Audio recap: Euro and Swiss franc to fresh 2018 lows against dollar
- Kinda sounds like the ECB is running out of bonds to buy
- European equities make gains to start the week
- ECB's Praet: Eurozone data point to some moderation
- Is cable making a stand, or benefiting from a holiday-thinned market?
- Word-for-word: What Warren Buffett said about cryptocurrencies Monday
- Fed's Bostic: Fed would have expected wages to rise more quickly, not sure why they haven't
- US April employment trends 108.1 vs 107.7 prior
- Australian dollar can't get off the floor
- US dollar eases as New York ramps up for the week
- Oil set for 'sell the rumour buy the fact' on Iran deal ending?
- Bill Gates would short bitcoin if he could
- WTI crude approaches Asian session highs
In the markets today:
- Spot gold is down -$1.40 or -0.11% at $1314
- WTI crude oil is trading at $69.98, up $.26 or 0.37%
- Bitcoin on Coinbase is trading at $$9395.58, down $120. The digital currency rebounded from a low of $9162 and trades right around its 200 hour moving average at $9391
- S&P index close up 9.21 points or 0.35%
- NASDAQ closed up 56 points or 0.77%
- Dpw closed up 95 points or 0.39%
- two-year yields was unchanged at 2.497%. The 10 year yield was also unchanged at 2.949%
The price of crude oil cracked the $70 for the first times since 2014. The gains are reflective of both increased geopolitical risks and a runoff of the supply glut that kept prices down in 2017 and into 2018.
The price of oil has risen more than 10% over the last month on concerns that Trump would withdraw from the Iran Nuclear deal. That deal had sanctions eased return for curves to its nuclear program. If Trump is to withdraw, it would likely lead to more sanctions and a lower oil supply.
A stronger global economy is also helping to lower the glut of oil.
Later in the US session, Trump announced that he would announce his decision on Iran tomorrow.
Ironically, it led to some profit taking in both the oil and stock markets on a "buy the fact, sell the news" trade. The price of crude did move back below the $70 level, but is still closing near the highest level since 2014.
In the forex market today, the GBP was the strongest currency despite the London bank holiday today. The weakest currency was the weakest, despite the rise in oil prices (which tends to help the CAD).
The USD was more up, vs down. The greenback rose vs the EUR, CHF, CAD, AUD, was near unchanged vs the JPY and the NZD, and was lower vs the GBP.
Techincally, the EURUSD fell, but the momentum lower faded. In addition, for the 2nd consecutive day, the pair marker reached a new session low for the year but could not sustain selling momentum. Is that an invitation to buy? Maybe, but the gains off the lows have not been so great.
The GBPUSD moved higher but stalled ahead of its 100 hour MA at 1.35755 (currently). It is trading at 1.3556 into the close. If the price is to go higher, that MA needs to be broken. If not, the seller remain in control.
The USDJPY peaked today between the 200 hour MA and the 100 hour MA (at 109.34-38). The inability to extend back above those MA, gave the sellers the upper hand. The price rotated lower, and is ending the day at 109.00. With the 100 and 200 hour MA key resistance above, the 100 day MA at 108.616 is key support on the downside.
The NZDUSD traded above and below its 100 hour MA at 0.70167 but still has not been able to trade above its 200 hour MA at 0.70356. The price has not traded above the 200 hour MA since April 18th. If the NZDUSD is to go higher, getting above the 200 hour MA would be required. The pair is trading at the 100 hour MA at the end of the NY day (at 0.70167).
