Forex new from US trading on October 26, 2015

  • Accepting defeat can be hard, but you can't give up
  • Citi suggests AUD/JPY longs
  • Reuters: US borrowing authority would extend until March 2017
  • PBOC advisor sees room for further easing in monetary policy
  • US Congress negotiations close to deal on 2-year budget pact
  • US stocks are mixed in early afternoon trading
  • French jobless total falls by 23.8K in September
  • European stocks edge lower
  • ECB QE count: Buys €12.254bn in PSP last week
  • October 2015 US Dallas Fed manufacturing index -12.7 vs -6.50 exp
  • New home sales miss, sends the dollar lower...
  • How Whirlpool sees the global economy
  • BOC's Agatha Cote to retire
  • September 2015 US new home sales 0.468m vs 0.550m exp
  • Moody's says failure to raise debt ceiling wouldn't mean US default
  • Muted start to the week for US stocks
  • The case for Australian dollar longs from NAB
  • A flat day for US stocks would be a victory
  • Look no further than UBS for how to trade EURUSD, USDJPY and AUDUSD
  • CHF-pair rallies suggest the SNB is back in again
  • Fedex to add 55k jobs to cover holiday periods - Livesquawk
  • Consolidation the theme in early trading

The markets were quiet with US new home sales the main piece of economic data to "hang a hat on". That release came in weaker than expectation and although the dollar initially fell, the greenback did recover and the rest of the day was a random walk for many of the pairs.

The EURUSD is ending higher on the trading day. In the NY session, the initial bias was down, but when the 1.1000 level could not be broken and the home sales came out weaker, the idea of continuing the pairs march lower (from last weeks action) was over. The move higher did take the price to the midpoint of Friday's move lower at the 1.1067. If the upside correction continues into the new trading day, the 1.1118 area is the 200 day MA. This will be a level to eye for sellers.

The USDJPY tumbled after the data but found support buyers against 120.50 (low reached 120.56). A move higher in EURJPY helped contribute to the better tone in the USDJPY. It fell to key support after the home data, only to find buyers waiting for low risk level. The decline to lows was erased and in the last few hours of trading we are seeing continued buyers and new highs being made. BOJ later in the week.

The GBPUSD traded above and below the 200 day MA in trading today but is closing above the key MA (close at 1.5351/ 200 day MA at 1.5331). The high for the day was capped against the 1.5382-86 area (high reached 1.5381) after the US data. The rest of the day was spent wandering lower and higher in a narrow range. Watch the 1.5331 in the new trading day (200 day MA).

SNBs Zurbruegg chatted about how the CHF is overvalued and that led to the pair being the loser for the day. The CHF was weaker against all the major currencies in trading today, falling the most against the NZD. Against the green back , the pair fell by 0.5%.

The NZDUSD was higher on the day as was the AUDUSD. NZ Trade data out in the new trading day. Also RBNZ later this week.

Other market data and currency change info for the major currency pairs.

WTI Crude $43.73 down -1.95%
Gold+0.1%
S&P -0.19%
Nasdaq +0.06%
Dow -0.13%