Session Wraps - Major Forex Headlines wrapped up by trading session

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Author: Adam Button
10

Forex headlines for New York trading on March 24, 2017:

Markets:

  • Gold up $1 to $1246
  • S&P 500 down 2 points to 2344
  • WTI crude up 38-cents to $48.08
  • US 10-year yields down 1 bps to 2.41%
  • CHF leads, GBP lags

After a few days of watching politics, you start to get the sense that the market doesn't like trading on politics. It's tough to get an edge and to interpret what anything means. So healthcare reform is dead now and Republicans will let it 'implode' and then fix it later, blaming the other side. In the meantime, they'll move onto tax reform.

The market seemingly likes that narrative, or maybe it likes that they pulled the vote rather than allowing an embarrassing defeat and blame game.

In any case, USD/JPY rallied from a session low of 110.60 up to 111.25 at the end of the day on the postponement. The S&P 500 tried to rally too but fell short, finishing down 2 points but well off the lows.

For the second day in a row, the euro was basically sidelined in New York trade. It chopped 10 pips either side of 1.0800.

GBP/USD ended its winning streak with a 30-pip loss on the day. The damage was done in London trading and it was essentially sideways around 1.2490.

USD/CAD was at the lows of the day at 1.3340 when CPI numbers crossed. They were a touch weaker than expected and that set off a quick rally to 1.3380. There were some marginal highs above but no follow through, in part because oil finally got off the floor.

Have a great weekend.

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Author: Mike Paterson

Forex trading news and economic data headlines 24 March 2017

News:

Data:

Strong PMI flash data gave the euro an early lift but we've also seen CHF and JPY demand and softer USD generally as focus remains across the pond.

EURUSD rallied from 1.0775 to 1.0812 leading euro pairs higher too as French, German and EZ PMI data all came in well above expectations and we saw a reaction not witnessed for a while now .

As that was going on we also saw USDJPY fail into 111.50 to eventually post 111.05 and USDCHF slide from 0.9950 to 0.9905 but it seems an SNB line in the sand down there is once again being defended with EURCHF also holding 1.0700.

The rise in EURGBP into 0.8650 from 0.8630 also put a cap on cable above 1.2500 again but it's gone nowhere of note since while USDCAD has also traded narrowly with CADJPY supply negating USD supply and with oil steady.Similarly AUDUSD, with gold going nowhere, and NZDUSD.

Equities open mixed but have all fallen into negative territory amid a generally risk-off session.

US durable goods and Canadian CPI out at 12.30 GMT then Fed heads Bullard and Dudley before the wait begins to see how the healthcare vote pans.

Should be some opportunity for more pips before the weekend arrives.

 

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Author: Eamonn Sheridan
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Forex news for Asia trading Friday 24 March 2017

News flow was again dominated by US healthcare news as negotiations continued ... for a time at least. News broke as Tokyo kicked off for the day that President Trump "is done negotiating - wants a vote Friday". As that was confirmed and more detail came to light the USD found its feet, rallying against EUR, CHF, GBP, yen. AUD/USD and NZD/USD remained stubbornly bid (for a while ... it didn't last ... but I'll get to that).

As is often the case during the Asian time zone ranges were not large, USD/JPY up around 50 off points on the session before stabilising, EUR/USD down 25 or so, for example.

Cable is down around 40 or so points, we did hear some comments from a Bank of England MPC member saying rates don't necessarily have to go up if inflation rises (see bullets above - Vlieghe the lovey dovey).

AUD and NZD eventually seemed to succumb to the USD otherwise-across-the-board strength. Both fell to new lows (compared with overnight trade)

There were various other items, but these were minor compared with the focus on US politics. The vote is apparently scheduled to begin sometime in the 2pm to 4pm (NY time) window Friday (1800 to 2000GMT). As the markets are winding down for the week, with Europe and the UK gone home leaving not too much liquidity at all. The scene is set for an interesting US afternoon.

I should note, check out Kuroda's comments, he was speaking at a Reuters event and he certainly gave them value for money, he went on and on and on. Net some very dovish yen remarks in there (see bullets above). Federal Reserve Dallas President Kaplan also spoke, not just on the economy and monetary policy but also touching on energy, as befits a Dallas Fed head.

Regional equities:

  • Nikkei +0.88%  
  • Shanghai -0.07%
  • HK -0.08%
  • ASX +0.76%

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Author: Adam Button

Forex news for New York trading on March 23, 2017

Markets:

  • Gold down $3 to $1245
  • WTI crude down 35-cents to $47.69
  • S&P 500 down 2.5 points to 2345
  • US 10-year yields up 1 bps to 2.41%
  • GBP leads, AUD lags

The story today should be that the pound led once again. Today it was because of strong UK retail sales data but it marks the sixth gain in seven days and that's into a very crowded short position. It finishes the day another 40 pips higher to 1.2520. The late Fed high of 1.2565 is a level to watch.

The story of the day was the ebb and flow of the healthcare debate in the House. It was billed as a Republican referendum on Trump and Ryan but after it was delayed, some selling hit stocks and USD/JPY but it was modest.

As I wrote yesterday "Members of Congress want it fixed in one way or another and that's when a compromise will come. I think markets are underpricing that trade. Win or lose, Trump's administration isn't falling apart."

What all the focus on the vote did was kill volatility. It was a wait-and-see market and we didn't get answers until late in the day.

USD/JPY started near 111.00, dropped down to 110.60, slowly climbed to 111.25, then finished back close to 111.00. All things considered, that's a decent range but moves were slow to materialize.

EUR/USD was a different story as it moved sideways in a 1.0770 to 1.0790 range. It's been narrowing as the day goes on and the House news hardly caused a reaction.

Commodity currencies were generally softer by around 30 pips over the course of trading .Oil was weak once again and that lifted USD/CAD to 1.3355 from 1.3320 in a steady move that's finishing at the highs of the day.

With the House bill delayed until Friday, it looks like we'll have plenty to write about in the day ahead.

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