Forex news for NY trading on August 8, 2016
- US Stocks end the session lower
- Barclays settles Libor rigging scandal with 44 states and DC
- Not a lot going on. Let's review.
- CSFB trade of the week: Buy NZDCAD
- Trump proposes "biggest tax revolution since Reagan"
- Non trending to trending (on the golf course)
- European stocks close modestly higher. Spain's 10 year yield falls below 1%
- Forex technical analysis: GBPJPY tests 100 hour MA
- NY Fed releases July survey of consumer expectations
- GBPUSD looking to stay below support area
- Forex technical analysis: AUDUSD breaks away from the peloton
- Weekly public sector bond purchases +12.414B vs +16.452B last week
- S&P/Nasdaq trades at record highs, but gains are modest.
- Forex technical analysis: EURUSD stuck in the mud
- Forex technical analysis: USDJPY approaches key upside
- Canada building permits for June -5.5% vs.1.5 estimate
- The strongest and weakest currencies as NA traders enter for the day
Little in the way of economic activity today, made the traditional post employment hangover, extra painful. Add Olympic fever and you have a verrrrry quiet trading day.
The EURUSD had a 16 pip trading range in the NY session - moving above and below technical support/resistance against the 200 day MA and the 100 bar MA on the 4 hour chart. those levels come in at 1.1076-78. Look for a break away in the new trading session. Last Monday the trading range was 28 pips. Today the range was not much better at 33 pips. Not to self: Take next Monday off. EURGBP was not much of a catalyst for any meaningful movement in the EURUSD either.
GBPUSD took out the London morning session on two separate occasions (at 1.30315) but could not muster any sort of threat against the 1.3000 level today. The low could only get to 1.30268 before rebounding modestly to 1.3040 area at the day's close.
The USDJPY tried to push higher in early NY trading. European stocks were higher and perhaps traders were anticipating some follow through buying from Employment Friday. That did not pan out. The US stock market ended the day down marginally. It did not crush the USDJPY, but it did slow a break above the 200 hour MA. That MA is at 102.42. We trade at 102.44 near the end of the trading day.
Building permits in Canada were much lower than expectations but the impact was marginal for the USDCAD. After early weakness (oil was up on the day), the pair did work it's way back toward unchanged at 1.3168 (closing neare 1.3162).
The AUD was the strongest of the major pairs. Toward the end of the London trading session, the AUDUSD was goosed up about 40 pips in about 1/2 hour. That move took the price toward the July high at 0.7674 (the high reached 0.7672). With nothing happening elsewhere in the market (it was like a cyclist moving away from the peleton), traders looked around, saw they ventured on their own and decided to lean against the old high instead of pushing through into virgin territory (at least since May).
The NZDUSD is one day closer to their interest rate decision on Wednesday at 5 PM ET (that would be Thursday morning in NZ). The expectation is for a cut in rates by 25 basis points. The consensus is unanimous on Bloomberg so you gotta think it is priced in. So the move should be on the nuances of the statement and comments from RBNZ's Wheeler. The 100 and 200 hour MAs are at 0.7155-65 and it might be where the pair settles just before the announcement. We area trading up today after selling off earlier.
Below are the % changes for the day of the major currency's vs each other.
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