Session Wraps - Major Forex Headlines wrapped up by trading session

Author: Mike Paterson
3

Forex news for the European morning trading on 23 Aug 2017

News:

Data:

The euro has grabbed most of the spotlight even if Draghi's supposedly "keynote" speech was a damp squib, but plenty going on elsewhere too.

EURUSD has risen to 1.1795 EURGBP  to 0.9214, EURJPY 129.06 as softer USD, better PMI data and underlying demand all chipped in to produce a decent session for the euro.

GBPUSD was already capped into 1.2850 and drifting around 1.2825 when the EURGBP demand pushed the pair down to 1.2791 with GBPJPY down to 139.95 as USDJPY retreated from 109.60 again to post 109.20

USDCHF has failed at 0.9700 and retreated to 0.9665 with EURCHF also falling back to 1.1400 from 1.1424 after an early rally from 1.1380

AUDUSD tightly bound between 0.7880-00 mostly with NZDUSD continuing its Asian retreat down to 0.7206 before finding fresh buyers and post 0.7228

USDCAD failed into 1.2600 again in general softer USD-neg sentiment.

Fed's Kaplan up to the mic (again) and a little data to come to throw in the mix.


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Author: Eamonn Sheridan
5

Forex news for Asia trading Wednesday 23 August 2017

USD/JPY popped above 109.70 in early Asian trade, carrying on its US-time rally. It managed to get above 109.80 briefly before stabilising somewhat circa 109.70. Yen crosses were generally higher alongside.

OK, now about that 'until ...'.

It sold off 30-odd points or so, in a sharp fashion as US President Trump spoke at a rally for his supporters in Arizona. The Prez threatened a government shutdown over the border wall with Mexico. Nervousness was not confined to USD/JPY, with overnight stock index futures in the US falling also (after their strong day on Tuesday in the US on tax reform expectations).

USD/CHF dropped a few points, EUR/USD regained its Asia session earlier highs.

There were moves today also for the NZD, AUd and CAD, all losing ground against the US upon the release (and follow through) of the New Zealand pre-Election Economic and Fiscal Update

This came in with some cuts made to GDP forecast and expected surpluses down the track 9the surplus for this year, on the other hand, is expected to be higher). NZD sold off, taking AUD and CAD along with it.

Data flow today was light indeed, what we did get though was another positive read for the Japanese economy (admittedly a lower tier data point) with the preliminary manufacturing PMI coming in at a 3-month high with encouraging details.

The People's Bank of China net drained liquidity in its OMOs for the day (big injection offset and more by maturing RRs for a net drain). Money market rates are higher after consecutive net drains this week a 5-month high).

Regional equities:

  • Nikkei +0.24%
  • Shanghai -0.21%
  • HK ... closed for morning trade (typhoon)
  • ASX -0.34%

Still to come:

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Author: Greg Michalowski

Forex news for North American traders on August 22, 2017

In other markets, the snapshot shows:

  • Spot gold reacted negatively to the US dollars gains today. It was down -$6.55 to 1285.33
  • Crude oil futures are trading lower in late trading after private data showed an inventory build. 
  • US stocks (and European stocks as well) ended with strong gains. The S&P rose 0.99%. The Nasdaq was up 1.36%. The Dow was up 0.90%
  • US interest rates rose helping the US dollar. The 2 year is trading at 1.321%, up 2 bp. 5 year is trading at 1.785%, up 3.4 bp. The 10 year is trading at 2.214%, up 3.3 bp. The 30 year is trading at 2.788%, up 2.5 bps.
The USD moved higher in trading today. The greenback was supported by talk of tax reform. Also European data was not that great today with the German ZEW sentiment index coming in at 10 vs 14 estimate.  Concerns about Brexit and more bearish technicals did not help the GBPUSD (dollar higher).  For the USDJPY, stocks which raced higher after a three straight days of declines, helped to push the dollar higher. The S&P was up nearly 1%. The Nasdaq did better at 1.36%.  Happy days are here again for the US equities.

IN economic news today, the FHFA house price index saw a lower than expected gain of 0.1% vs 0.5% estimate.   However, the house price purchase index for the 2Q did rise by 1.6% in the prior quarter. 

Later (at 10 AM ET), the Federal Reserve bank of Richmond released the Richmond Fed manufacturing index for August. It came in better than expectations at 14 vs 10 estimate. That was unchanged from the prior month.  The index has been above the 0 line since October 2016. The high water mark since that time is 19 (Feb 2017). So the index remains more near the upper levels for that regional indice.

Other than that the rise in stocks and the bond yields were the story for the day.  Both the Nasdaq and the S&P close above their 50 day MAs at 6272 and 2450 respectively. Each tested their 100 day MAs yesterday at the corrective low.   For bonds, the yields rose by 2- 3 basis points. That is not a heck of a lot but it did not hurt the greenback.  

Below are the % changes of the major currencies vs each other. While the dollar was the strongest, the NZD was the weakest.  The NZDUSD had a 0.67% change. The USDCHF and GBPUSD were not far behind. The CHF fell 0.65% vs the dollar while the  GBP fell by 0.63% today.  

The USDCAD was little changed.  The CAD was supported by better ex auto retail sales for June. They rose by 0.7% vs estimate of 0.1%. The dollar was only up a fraction of a % against the CAD. 


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Author: Mike Paterson

Forex news for the European morning trading on 22 Aug 2017

News:

Data:

A busy little session that has seen USD demand prevail overall but that's not been the whole story.

What started as USD demand morphed into JPY and CHF demand/risk-off plays.

Equities remained in positive territory but oil retreated  and combined with sell/resistance areas on USDJPY and (to a lesser extent) USDCHF we've seen caps at 109.47 with 109.50 the start of the 50-60 resistance area I highlighted earlier a couple of times, and 0.9665.

After failing above 1.2900 in Asia again GBPUSD has tested 1.2800-20 support/bids with GBPJPY falling to 140.07.Similarly EURUSD down to 1.1745 from 1,1805 with EURJPY down to 128.35. 

                                                         GBPUSD

The same pattern can be seen on AUDJPY and NZDJPY sending the core pairs to 0.7898 and 0.7275 respectively.

EURCHF down to 1.1345 on those USDCHF offers and euro supply which is helping to cap EURGBP too above 0.9170.

USDCAD has traded 1.2580-98 with large option expiries at 1.2600 in play and helping to cap despite oil trading a bit softer.

ECB's Constancio speaking at the top of the hour with Canadian retail sales next on the data slate at 12.30 GMT

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