Session Wraps - Major Forex Headlines wrapped up by trading session

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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Author: Mike Paterson
1

Forex news for European trading on May 22 2017

News:

Data: None of note

Monday malaise?  Currency markets were having none of it as the week gets off to a very lively start.

Large option expiries today in many major pairs and it wasn't long before GBPUSD was testing those at 1.2975 from 1.3005 with GPBJPY selling once again a primer mover from 145.00 into 144.00. USDJPY fell too from 111.45 to 111.15 as did EURUSD to 1.1162 from 1.1190 as yen demand prevailed.

Good two-way business then prevailed with USDCAD testing 1.3500 on firmer oil prices and AUDUSD holding its own around 0.7450.

More of the same for a while then came comments from Germany's Merkel and the robots lapped up the euro "too weak" quote to send EUR pairs sharply higher.

EURUSD has posted 1.1246 from 1.1180, EURGBP 0.8645 and EURJPY recovering all the early losses to also post session highs of 125.30

GBPUSD also rallied but capped by EURGBP outpacing and we've clung to 1.3000 since.

 WTI has been up to $51.20 from $50.80 and back down again. Brent similarly between $53.85 and $54.15

Gold has been on a steady incline from $1252.50 to $1257.40 just short of the opening Asian highs.

Equities opened mixed and have remained in that mode.

No data of note today but we do some CB talking heads lined up later.

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Author: Eamonn Sheridan

Forex news for Asia trading Monday 22 May 2017

Weekend:

ICYMI:

GBP gapped lower in the very early session here, bounced to cover much of the hole, but fell away again. Selling was on option-related interest combined with UK threats to quit trade talks with the EU over the €100bn 'divorce bill'. (Note, formal Brexit talks are scheduled to begin June 19).

USD/JPY, too, had an active session, lower to begin the early pricing for the week (North Korea fired another missile over the weekend which was cited for the early yen strength) but it was soon undone. USD/JPY tracked higher throughout the Tokyo morning despite decent export data. One thing to note on the data was a declining trade surplus with the US on the month (I make no comment on rubbery accounting :-D ) which would tend to reduce pressure on Japan from the US administration and perhaps was a yen negative. Whatever the reason for the move (buying > selling anyone?) USD/JPY found a lid around its US Friday's high circa 111.60.

EUR and CHF were both slightly softer against the USD for the session, but both remained in subdued ranges.

AUD and NZD, too, both in small ranges. NZD is slightly higher, AUD slightly lower. S&P revised ratings & outlooks for many of Australia's financial institutions, with 23 downgraded. There was no action on the 'big 4'. The agency cited concerns over high levels of private sector debt & high house prices, echoing RBA remarks made recently (Well, beginning a good few months ago, and noted (over and over) on FXL ...  it actually seems to have taken S&P a good while to catch on).

Gold is lower on the session. Weekend remarks from Saudi Arabia (and elsewhere) seem to have further cemented the extension of oil production cuts (out to March 2018 it would appear) and gave oil prices a boost here to open the week.

Regional equities:

  • Nikkei +0.30%
  • Shanghai -0.24%
  • HK +0.79%
  • ASX +0.72%

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Author: Adam Button
6

Forex news for US trading on May 19, 2017

Markets

  • Gold up $8 to $1255
  • S&P 500 up 16 points to 2382
  • US 10 year yields flat at 2.23%
  • WTI crude up $1.02 to $50.36
  • EUR leads, USD lags

The US dollar slowly wilted in New York trade on Friday, especially against the euro and Canadian dollar.

One of the reasons for weakness were the comments from Bullard. He's the first Fed official to acknowledge the obvious -- that data has been disappointing and a June Fed hike might not be the best idea. The dollar was slow to react because he's such a dove but the comments weighed.

EUR/USD struggled ahead of 1.12 for hours then finally broke through and touched a high of 1.1212 before finishing at the figure. It capped a huge week for the euro, which has been on the march from 1.06 at the time of the first round of the French election.

Cable finished above 1.30 to help cement its hold on a new range. The mystery flash crash yesterday was completely erased but it couldn't break above Thursday's high.

USD/CAD sank in large part due to the 2% climb in oil prices as WTI rose above $50. Weak Canadian data and worries about housing were brushed off ahead of a long weekend in Canada. Bids at 1.3500 held, but just barely.

USD/JPY spent the entire day chopping in the 111.00 to 111.70 range. It tried both sides a few times but continued to run into sellers and finishes at 111.25. A downtick in stocks and USD/JPY came late in the day on the Washington Post story and surely the weekend (and week ahead) will be all about the latest political bombshells.

Have a great weekend.

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More session wraps for your convenience.

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