October 3, 2017
As North American traders enter for the trading day, the EUR is the strongest, while the NZD is the weakest. The pairs are more clumped together relative to other days. The USD is mostly higher up against the GBP, JPY, AUD and NZD. It is down against the EUR and little changed vs the CHF and CAD.
The EURUSD moved below a key support area in the Asian/early European session. That area came between 1.1709-20 and included the 200 week MA (1.1709), the low from last week (1.1716), the swing high from August 2015 (1.1711), and the 38.2% at 1.17120 (from the June 20 low). The low reached to 1.16954. However, that selling could not keep the momentum going and the price pushed back higher. The corrective high stalled at the 100 hour MA at 1.17617 and has backed off. That MA is stopping the bulls from taking more control. Be aware. The 1.1709-20 is back to being support after the failed look.
The ranges for the major pairs and crosses (lower chart below) is showing that all the pairs are well below the 22-day averages. The GBP pairs are closer to weakish levels with the GBPUSD down -26 pips and the EURGBP trading near its high for the day (up 33 pips).
There is little on the calendar today as the market sets up for the Unemployment report on Friday (ADP employment does not come out until tomorrow).
Feds Powell is scheduled to speak at 8:30 AM/1230 GMT, but on regulatory reform. Car sales for the month of September will be released through the day (for September).
In other markets, the snapshot now shows:
- Spot gold down -$0.60 to $1270.32
- WTI crude oil down -$0.17 to $50.41. The price low stalled at $50.34. It remains above the $50 level
- US stocks in pre-market trading are up modestly. The S&P futures are up 2.25 points. The Nasdaq futures are up 9 points. The Dow futures are up 34 points
- US yields are mixed. 2 year yield 1.479%, down -0.4 bp. 5 year 1.9344, unchanged. 10 year 2.346%, up 0.5 bp. 30 year 2.8848%, up 1.0 bp
- In Europe stocks are mixed. Dax up 0.6%. Cac up 0.21%. FTSE UK unnchanged. Spain's Ibex down -0.8%
- European 10 year yields are a bit higher. Germany 0.483%, up 3.2 bp. France 0.771%, up 3.4 bp. UK 1.374%, up 4.5 bp. Spain 1.735%, up 4 bp. Italy 2.178%, up 2.1 bp
