Session Wraps - Major Forex Headlines wrapped up by trading session

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Author: Adam Button
4

Forex news for New York trading on August 18, 2017:

Markets:

  • Gold down $1.63 to $1286 after hitting $1301
  • S&P 500 down 4 points to 2425
  • WTI crude up $1.55 to $48.65
  • US 10-year yield up 1 bps to 2.19%
  • CAD leads, CHF lags

The US dollar wanted change in the White House and it came Friday as Steve Bannon was sent packing. USD/JPY was at the lows of the day at 108.59 ahead of the news and then climbed as much as 100 pips higher before finishing at 109.17.

One spot the US dollar couldn't get any real momentum was against the euro. EUR/USD traded in a 1.1730 to 1.1765 range in North American hours and closed out the week at the top of that range.

Cable was a disappointment as it failed to hold early gains and skidded as low as 1.2830. It did managed to bounced to 1.2880 late to finish with a slight gain but at a time when the US dollar is struggling, the pound's underperformance is a red flag.

The Canadian dollar got a two-pronged jolt. The first leg came from the CPI report. Although the data was only lightly strong, it was enough to spark a big bid that sent USD/CAD down to 1.2600 from 1.2660. The drop continued down to 1.2573 at the end of the day on the largest one-day jump in crude since November.

AUD/USD was choppy and slumped early in US trade down to 0.7910 but later it found a bid and finished at 0.7934.

One chart worth taking a look at on the weekend is gold. It appeared to be breaking above a major double top at $1300 early in the day but faded after Bannon was fired. Ultimately, it finished slightly lower.

Have a great weekend.

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Author: Mike Paterson

Forex news for the European morning trading on 18 Aug 2017

News:

Data:

Simply awful news from Barcelona. For me made even more chilling , if that is indeed possible, by the fact that my son was there partying with friends just a few weeks ago. Sincere condolences and thoughts go out to anyone sadly caught up in this latest atrocity. Thankfully, at least, another attempt nearby has been foiled overnight by police.

Market wise we've seen some fallout in the shape of some safe-haven plays with yen, swiss franc and gold all in demand.

USD supply also notable but price action has been volatile n certain pairs particularly GBPUSD and EURUSD both of which have seen sharp spikes only to retreat to from whence they came.

EURUSD has posted 1.1775 in a rush from 1.1740 and GBPUSD to 1.2919 from 1.2890 amid a rollercoaster ride. EURGBP slipped below 0.9100 but soon found some buyers as did EURCHF down at 1.1270 again.

AUDUSD started quietly around 0.7895 having held 0.7870 in Asia but a spike in gold from $1288 to $1295 saw offers/res break at 0.7900 triggering stops to 0.7926 and then 0.7932 before retreating.

USDCAD has been trading 1.2535-75 reflecting the fickle USD sentiment as much as anything else.

Data to come includes Canadian CPI and US Michigan sentiment index, with Fed's Kaplan up to the mic again after.

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Author: Eamonn Sheridan

Forex news for Asia trading Friday 18 August 2017

Yen strength and 'risk off' continued a little further in the Asian morning as reports came through of another attack in Spain, though one which thankfully was not as severe as the Barcelona attack.

Otherwise news and data flow was very quiet indeed.

USD/JPY dropped down to under 109.40 and since then has stabilised but is showing little sign of there being much impetus behind the bounce. EUR/JPY approached 128.00 and is up around 128.40 now as I update, EUR/USD meanwhile has gained from its lows (circa 1.1710) to around 1.1735.

Cable has ticked up from low circa 1.2860 to just under 1.2890 while AUD and NZD against the USD have both managed a small move higher also. USD/CAD is back around 1.2660/65.

With such a light news and data flow forex ranges have been small only.

We have Candian CPI and US consumer sentiment to look forward to in the US time today, which might provide some energy for moves ahead of the weekend.

Regional equities:

  • Nikkei -0.94%
  • Shanghai -0.20%
  • HK -0.76%
  • ASX -0.72%

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Author: Greg Michalowski
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Forex news for NY trading on August 17, 2017

A snapshot of the other markets at the end of the NY session shows:

  • Spot gold is up $5.00 at $1288.20
  • WTI crude oil is trading up $0.20 or 0.43% to 46.99
  • US yields have moved lower on safe haven flow: 2 year 1.2976%, -2.8 bp. 5 year 1.7459%, -3.6 bp.  10 year 2.18%, -4.2 bp. 30 year 2.7716%, -3.6 bp
  • US stocks tumbled and closed at the lows.  S&P down 1.54% to 2430.01. Nasdaq down -1.94% to 6221.91. Dow down -274.14 to 21750.
There was a terrorist attack in the heart of Barcelona. A van jumped the curve and mowed down scores of shoppers on the busy street.  Thirteen people are reported to have died, a hundred are wounded/15 seriously. The police have two suspects in custody.  ISIS is taking responsibility.  Thoughts and prayers go out to those injured and killed in the city. 

In economic news today,initial jobless claims came out better than expectations at 232K vs 240K estimate. The 4-week moving average also dipped by 500 to 240.5K.  US Philly Fed index came out at the same time and was a touch higher than expectations at 18.9 vs 18.0.  The dollar moved a little higher after the data.  but stalled.  The USDJPY specifically stalled against its 100 bar MA on the 4-hour chart at 110.40 (the high reached 110.365). 

Other data today including the US industrial production and capacity utilization.  Besides that data came out earlier than expectations (about 1/2 early due to someone posting it to the website), the impact was not great.  

A little later at 10 AM ET/1400 GMT, the US leading index came in as expected at 0.3%.

However, at the same time there was an unconfirmed report that Gary Cohn, Trump economic advisor - and potential replacement for Janet Yellen at the end of her term as Fed chair - resigned.  That did lead to a drop in the USD. The USDJPY moved to new session low at 109.72.  The EURUSD - which trended lower in the London session - started to recover (lower USD).  When the WH denied he was leaving it was fast break back higher in the dollar but it did not really turn the tide fully - especially against the JPY (and JPY pairs).  For the USDJPY, a cluster of resistance against the 110.00 area (including 100 and 200 hour MA and 50% retracement) stalled the rally. That was the high for the NY session. 

There still are hangover concerns about the Trump and the WH. So later in the day, when GOP Senator Robert Corker had some stinging comments about the President it did not help the USDJPY - nor the stock market.

Stocks which were already down, started to pick up downward momentum   The news out of Barcelona was not positive as well.  The major indices ended the session at the lows for the day. 

The S&P and Dow each had their 2nd worst day's of the year.  The S&P shed -1.54%. The Nasdaq fell -1.94%. Finally, the Dow fell by -274 points (down 1.24%).  Each of the major indices ended the day at the lows. The question tomorrow (it is option expiration) will be is the big move a one day aberration, or is this the start of a bigger corrective move.  If you bet the short side in 2016 you would have been wrong.  Both the S&P and the Nasdaq have had closes below their 50 day MAs (today inclusive) but they have not closed below their 100 day MA since November 2017.  Key day tomorrow for the stocks.  

Overall, although the greenback got hit vs the JPY, currencies like the the EUR, GBP were pressured into the NY session. The terrorist action in Spain certainly did not help the EUR either.  Both the EURUSD and GBPUDS, did not recover fully by the close. In addition the risk/commodity currencies like the CAD, AUD, and NZD were sold. So the dollar was mixed.   

The biggest gainers were the JPY and CHF as they benefited from flight to safety flows. 

Below is an end of day snapshot of the % changes of the major currencies vs each other.


Prayers again to the victims in Barcelona, their families and the medical personal who will be caring for those injured.

Wishing you all a wonderful, peace-filled weekend. After the events of the last week or so, we could use some peace.

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