Session Wraps - Major Forex Headlines wrapped up by trading session

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Author: Adam Button
1

Forex news for US trading on May 23, 2017:

Markets:

  • Gold down $9 to $1251
  • WTI crude up 38-cents to $51.52
  • S&P 500 up 4 points to 2398
  • US 10-year yields up 3.3 bps to 2.29%
  • NZD leads, EUR lags

The market is starting to get the sense that the Fed is going to hike rates in mid-June and that the US political situation will work itself out.

That was the signal from the bond and stock markets. Treasures, in particular, sold off on the reversal of safe haven flows. The move accelerated after the sales of 52-week T-bills and 2-year T-notes. The yield on the 2yr sale was the highest since 2008.

USD/JPY traded near 111.10 as US traders arrived. It had been in a narrow range in Europe and Asia but jumped into the London close in a one-way move to 111.75 before retracing 25 pips and then embarking on a fresh climb to a high of 111.86 at day's end.

That was part of a broader US dollar bid that sent the euro down to 1.1183 from 1.1225 and sapped 30 pips from the recently-strong commodity currencies. The kiwi was the high-flyer earlier in the day but it ran into resistance near 0.7050 and fell back to the big figure.

Cable was hit by some intraday flow-driven moves. A big bid appeared into the London fix and quickly sent the pair up to 1.3020 from 1.2975. The chop continued for an hour and hit 1.3032 but later in the day sellers jumped on the pair as the USD bid arrived and it sank all the way back to 1.2960, finishing near a US low.

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Author: Mike Paterson
6

Forex news for European trading on May 23 2017

News:

Data:

Markets have continued to function, as they always do in times of tragedy, but last night's events in Manchester have most certainly cast a sad and uneasy shadow.

The pound had small wobble on the tragic news in Asian trading when the story first broke. GBPUSD fell to 1.2973 but has since found decent sell interest at 1.3000 exacerbated by strong EURGBP demand still to post 0.8675.

Euro demand generally prevailing again with EURUSD up to fresh 6-month highs of 1.1269 helped by decent PMI and IFO before running out of steam as traders took some more money off the table .

USDJPY had an early dip into 111.00 from 111.20 as GBPJPY supply led both core pairs lower but as equities rallied strongly from an uncertain start so we saw yen -pair demand as risk-on sentiment prevailed. That has also helped support core pairs for the most part but not stopping GBPUSD having another wobble to test 1.2950.

Since then though and after another Manchester bomb scare was dismissed we've seen EURGBP retreat to 0.8657 and GBPUSD rally to 1.2982 as I type.

USDCAD has made steady retreat to 1.3456 as oil remains supported albeit off its highs as Kuwait cast some doubt over the 9-month output cut extension. WTI and Brent both retreated but found decent dip demand.

AUD and NZD have both continued to feel the love with generally softer USD tones prevailing but AUDUSD did find resistance above 0.7500 as gold retreated from $1263 to $1258.50.

US housing data and a few ECB/FOMC talking heads to throw into the mix but the world's attention is  sadly on Manchester right now.

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Author: Eamonn Sheridan
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Our thoughts are with all those killed and hurt, their friends and families, in the cowardly attack in Manchester at an Ariana Grande concert mainly attended by young kids.


Forex news for Asia trading Tuesday 23 May 2017

Yen gained early on the session, perhaps on concerns over the explosion in the UK. USD/JPY lost 40-odd points, down to around 110.90 in early Tokyo before grinding out a recovery back to around 111.20. Yen crosses followed a similar pattern, down early and then a recovery.

S&P downgraded Brazil, which flowed on into a weaker MXN, but it retraced somewhat:

EUR and CHF have had little net movement against the USD following small ranges. Cable, too, down just a few points. News from the Eurogroup early in the Asia session - no agreement yet reached on Greece (see bullets above).

AUD and NZD are both higher, Australian dollar the outperform of the two (some AUD/NZD buying today but nevertheless both supported). For NZD trades, Wednesday and Thursday will see market-relevant announcements: Heads up for NZD traders - Fonterra announcement expected Wednesday

Gold is up a tiny.

Regional equities:

  • Nikkei -0.11%
  • Shanghai -0.10%
  • HK +0.31%
  • ASX -0.02%

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Author: Greg Michalowski

Forex news for trader on May 22, 2017

In other markets:

  • Spot gold is hired by five dollars  or 0.41% to $1261.01.
  • WTI crude oil futures settle the June contract at $50.73, up $.40  or 0.79%
  • US stocks are ending the session higher. S&P index +0.54%. NASDAQ +0.84%. Dow industrial average  +0.48%
  • US  yields  are  slightly higher: 2-year note  1.274%, +0.4 basis points. 5-year note 1.790%, plus 1.0 basis point. 10 year note 2.248%, +1.4 basis points. Thirty-year bond 2.910%, +1.4 basis points.
It was  a quiet North American session today.  Was it the Canada holiday, little in the way of economic data, Trump out of the country, or just a Monday?  Probably a combination of all.  

The dollar is lower vs the major currencies today but if you take out the move against the NZD, the changes were modest.   The NZDUSD started to take out swing highs going back to the start of the month and on each break, the price squeezed higher and higher.  The move did not stop until the price got within 3 pips of the 0.7000 level (natural resistance level).  That took the price to the highest level since April 24th.   Overall, the NZDUSD rose by 0.94% (dollar lower by that amount).  

The 0.94% change in the NZDUSD was no where close to the changes from the other currency pairs.  

The dollar fell against the following:
  • EUR  -0.26%
  • AUD -0.20%
But gained against the following:
  • GBP +0.29%
The other pairs against the USD were little changed:
  • JPY -0.04%
  • CHF +0.04%
  • CAD -0.02%
Economically, the US calendar was light with the Chicago Fed National activity index, the lone release. It was better than expected but did not have much of an impact. 

Fed's Kaplan spoke cautiously about the economy. 
OPEC talked about 9 month extension of production but Iraq only wants 6 months. They meet on Thursday.   Oil was higher but was not running away.

Technically speaking:

EURUSD is getting closer to the November election high of 1.1300. The high reached 1.1263 today.  There should be some hesitation on an approach (despite bulls in control.  

USDJPY has the 100 hour MA getting closer at 111.50 (and moving lower). A move above would be more bullish (or at least point to more corrective gains in the short term).

GBPUSD is trying to stay above the 1.2888-90 support level. The NY session low reached 1.2991.  Stay above more bullish/move below and the 100 hour MA comes into play at 1.2975 (and moving higher). The low today stalled ahead of that MA.

The USDCAD is trying to build value below the 1.3500 level but could only get to 1.3484 today. The BOC meets on Wednesday AND OPEC on Thursday are two events that may keep trading subdued.  

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Below is the % changes of all the major currency pairs vs each other. 


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