Session Wraps - Major Forex Headlines wrapped up by trading session

Author: Mike Paterson
3

Forex news for European morning trading on July 25 2017

News:

Data:

A session for the intra-day jobber as the FOMC tomorrow casts a shadow and contains price action as we wait on NA desks to make their move.

USDJPY had an early dip to look at 110.80 support but has been the star of the show since as general yen selling has helped underpin core pairs and taking this pair back to test 111.50.


GBPUSD was pulled around by EURGBP early in the session around 1.3025-35 but then CBI data sent the pair down to test 1.3000 and EURGBP up to 0.8959. It all came to a grinding halt though and with the help of GBPJPY demand up to 145.50 we testing 1.3050 and 0.8935 again as I type.

EURUSD threatened to head higher but stalled at 1.1670 but found option related support below 1.1650 while USDCHF rallied to 0.9484 before retreating.

Strong performances by equities have added to the risk-on sentiment and therefore yen selling while oil has also had a decent session with Brent up to $49.56 from $48.80. Gold has naturally fallen from $1257 to $1250 as safe-haven demand reduces but that's not stopped AUDUSD rallying to 0.7958. USDCAD has fallen to 1.2487 on the firmer oil price.

Data wise we have US S&P and consumer confidence while BOE's Haldane speaks at 17.00 GMT.

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Author: Eamonn Sheridan

Forex news for Asia trading Tuesday 25 July 2017

USD/JPY had an early move a few points higher in the Tokyo morning, testing to its US-time high around 111.30 but the move was not sustained. USD/JPY drifted back to under 111.10 amidst some USD weakness, albeit in only small ranges and not across the board.

EUR/USD moved up towards 1.1655 (from session lows early around 1.1630). Cable and USD/CHF are both little changed on the session, as is gold.

There was a flurry of activity in the NZD, lower on news hitting of a contagious cattle disease:

But it soon bounced back to be also little changed on the session.

AUD/USD had drifted lower to around 0.7910 and just under but it too bounced back, to above 0.7930 briefly.

There has been very little in the way of fresh news today. We got some Australian data (weekly consumer sentiment, higher on the week), BOJ June meeting minutes (the minutes are preempted by the 'Summary of Opinions' which come out much sooner after the meeting) and that NZ cattle news was about it.

Maybe it's a lame excuse, but the market seems to be waiting on the FOMC announcement on Wednesday, previews:

Regional equities:

  • Nikkei -0.13%
  • Shanghai +0.18%
  • HK +0.06%
  • ASX +0.84%

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Author: Greg Michalowski

Forex news for trading on July 24th, 2017

An end of day snapshot of other markets show:

  • Spot gold +0.38%, or+0.3%
  • WTI Crude oil up $0.64 or 1.42%
  • US stocks ended the day mixed. The Nasdaq closed at a record level up 0.36%. S&P fell by -0.11%. The Dow was lower by -0.31%
  • US yields rose: 2 year 1.360%, +2 bp.  5 year 1.819%, +1.7 bp. 10 year 2.2535%, +1.5 bp. 30 years 2.833%, +2.4 bp
  • European stocks were mixed

The USD was mixed with modest gains vs the EUR, CHF and NZD and declines vs the GBP, CAD and AUD.  The strongest currency on the day was the CAD. The weakest was the NZD.


The CAD benefited from higher oil prices and better Canada manufacturing whole sales (rose 0.9% vs +0.5%) . That helped to pressure the USDCAD to the lowest levels since May 3rd 2016, when the pair bottomed at 1.2460.  The price today fell below the 1.2500 level to a low of 1.2483 but has move back up to 1.2511 near the close.  The pair remains oversold, but continues to make new daily lows.  In the new day, watch a move above 1.2522-24. It could lead to more upside momentum on a break higher. A move below the 1.2497 (trend line) should see a run in the new day toward the low price from 2016 (at 1.2460).  


There was limited US data today. The Markit PMI indices were better with the Manufacturing index up to 53.2 vs 52.2 estimate. The service PMI was also better than expected.  Later, existing home sales showed a decline from the prior month of -1.8% but the sales pace of 5.52M is still reflective of low inventory.  Median prices yoy are up 6.5%.  

The data had a limited impact immediately after the release. However over time there was some modest increase in the USD.

For the USDJPY, the pairs price - in the London morning session - fell below the 61.8% of the move up from the June 2016 low at 110.967, but recovered during the NY session.  The pair is ending near unchanged after spending most of the day in the red. That might be indicative of a better tone in the new trading day.  The 111.47 to 111.54 were swing lows from Wednesday and Thursday of last week.  That may be a target in the  new day.  The 100 and 200 day MAs at 111.66 and 112.96 respectively would be other upside targets.  

The EURUSD bottomed at 1.1624, above the support target at 1.16157. That level corresponds with the high from May 2016.   Stay above that level in the new trading day is move bullish. Move below and it will be more bearish.  

As mentioned above, the NZD was weakest currency on the day. For the NZDUSD the pair corrected lower from what was the highest high since September 2016.  The fall saw the price retest the 200 week MA at 0.7724 (the low reached 0.7721). The price is closing at 0.7437 - above the 200 week MA level. That keeps the buyers still in control as we head into the new trading day.   Stay above 0.7724 is more bullish. Move below is more bearish.

Good fortune with your trading in the new trading day. 

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Author: Mike Paterson
9

Forex news for European morning trading on July 24 2017

News:

Data:

A busy enough session to kick-start a week that once again will see the FOMC in focus.

After the big rally last week for the euro traders have been happy to take some money off the table, helped in part by softer than expected PMI data, and we've seen EURUSD down to 1.1630 from 1.1675,  EURGBP down to 0.8932 from 0.8970 and EURJPY down to 128.86 from 129.70 with USDJPY failing to hold the rally back above 111.00 and posting new recent lows of 110.62

The sell-off in EURGBP put a bid under GBPUSD and after an early fail at 1.3020 and retreat to 1.2990 it was mostly one-way traffic to post 1.3050 before being capped by fresh sell interest.

Similarly AUDUSD found a bid from EURAUD supply and has been up to post 0.7967 from 0.7920 before running out of steam as EURUSD found dip demand.

Equities have been and oil started a little wobbly but then found support from lots of output cut rhetoric emanating from the latest OPEC/non OPEC meeting. WTI  has risen to $46.33 from $45.45, and Brent $48.76 from $47.70 before both running out of puff.

                                                          Brent crude 15min

Next data risk comes in the form of US mftg PMI at 13.45 GMT with existing home sales following at 14.00 GMT.

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