Forex news for US trading on September 7, 2016.
- US stocks end the day mixed/little changed
- Put another three billion barrels on the oil fire
- What is sticking out technically in select cross currency pairs
- WTI crude oil settles $45.50. Trades between MA levels.
- The simple answer to the missing piece in so many economic puzzles
- Beige Book: Inflation slight, growth 'modest' or 'moderate'
- Deutsche targets parity in AUDNZD
- Focus on the Apple 7 release
- GBPUSD extends to new day lows. Falls below 100 hour MA
- Forex technical analysis: USDJPY trades at session highs
- Fed's Lacker: Case for rate increase in September strong
- EIA cuts outlook for 2016 Nat Gas output to 79.21 BCF/Day/Raises Crude output
- Forex technical analysis: NZDUSD trims gains
- Fed's Lacker: Over-stimulating economy may risk inflation
- European shares end the day higher
- Fed's George: US at or near full employment
- Carney says he has personally ruled out helicopter money
- Forex technical analysis: A move higher in the EURUSD stalls quickly
- Mark Carney: "You're welcome"
- Feds Lacker answers questions on Capitol Hill
- Forex technical analysis: USDCAD rallies on more cautious comments
- Canadian dollar falls after Bank of Canada highlights downside risks
- Full text of the Bank of Canada decision
- NIESR Aug quarter UK GDP estimate +0.3%
- Canada Ivey PMI 52.3 vs 56.5 expected
- US July JOLTS job openings 5871K vs 5630K expected
- Bank of Canada holds interest rates unchanged at 0.50%
- Carney: Data suggest economy 'a bit stronger' than BOE forecast
- US stocks opening lower. Apple iPhone 7 to be released today.
- BOE Carney says he's comfortable with decision to add stimulus
- The strongest and weakest currencies as NA traders enter for the day
The Bank of Canada kept rates unchanged but was a bit more cautious in it's assessment of the downside risks. That sent the USDCAD to the upside in a hurry with the price going from 1.2820 to about 1.2910. However, momentum slowed and the rest of the day was spent in a 23 pip trading range. The good news is gains were kept and support at the 1.2885 held support on the largest corrective move (level was a swing low twice in trading yesterday). Stay above keeps the bulls more in control. in the new trading day. UPDATE: A drawdown of 12.1 billion barrels at the end of the day in the API report is leading to a late day sell off in the USDCAD toward that support at the 1.1285 area. The level is holding for the time being.
Keeping with the commodity pairs, the NZDUSD was the strongest currency in trading today (see chart below) but during the NY session, 50% of the move from the lows, was given back. The 50% did hold at the 0.7440 level. That is the good news for the longs. The not so great news is the price high after hitting the low could only print up ot 0.74495 (less than 10 pip range over the last 4 hours of trading. Support at 0.7440. Stay above bullish. Move below and not so bullish anymore.
The GBP was the weakest currency of the majors today. it was helped by weak UK data and that selling continued in NY trading. BOE Carney (and other BOE members), testified and said that they would continue to ease if they had to. This helped to keep the pressure on the pair. Overall, the currency fell against all the major currency pairs in trading today. Against the USD, the GBPUSD fell to the 100 hour MA at the 1.3331 currently (price is above that MA at 1.3337 near the US close). The price did dip below in the NY afternoon session. That should have led to more selling but the market was tapped out. Yesterday, the pair rallied on horrible US news. Today bad UK news, dovish BOE, and perhaps some better US JOLTS jobs opening data, helped to turn the beat around. PS JOLT job openings for July increased to record levels today. The data helps to offset some of the weakness seen in the US jobs report from last Friday.
The EURUSD could not get things going in the European session and after a spurt higher to new session highs at 1.1271, the pair reversed back toward the 100 hour MA at 1.1238. That MA was breached on a few occasions today and is closing near the level, but momentum on the breaks were limited. That says to me, the market does not know what it wants to do. It is also saying, "ECB decision tomorrow. Let's see what Draghi has to say.". Tomorrow may be the EUR's day to be the currency pair of focus.
