AUTOREFRESH 
ForexLive US wrap-up: USD/JPY shows surprising strength
- Case Shiller home price index rises 0.4% m/m in May, up 4.6% y/y
- Conference Board’s consumer confidence index falls to 50.4 from 54.3
- Richmond Fed index falls to 16 from 23
- State Street global investor confidence index rises to 96.0 in July from 81.2 in June
- BOC’s Duguay: Rate hikes inevitable given monetary stimulus, timing uncertain
- S&P 500 dips 0.1% to 1114, at 200 day moving average
- US 10-year not rises to 3.05%, up 6 bp in yield
The US session opened with the market in an ebullient mood. Equity average were up sharply and risk assets were in heavy demand. The party sputtered early and revelers were left to cast about for another venue for the rest of the session.
EUR/USD reached its highs very early on, before most New Yorkers finished their first cup of coffee. Prices dropped quickly as selling from the SNB and the BIS helped cool demand for EUR/USD. Corporate selling from a German firm weighed as well, believed to be part of a takeover.
We edged through 1.2965 support and triggered small stops but found demand in the 1.2950 area. Reserve diversification was rumored on dips out of Asia. We end the session at 1.3000, boosted by demand for EUR/JPY in afternoon trade.
That cross ends at its firmest levels since the immediate wake of the announcement of the Euro TARP in early May, at 114.35.
USD/JPY was a strong performer as well. Speculative short-covering as well as buying from US real money helped boost the pair close to 98.00 late in the day. Exporter offers are rumored at 88.00/05.
GBP was a strong performer today, boosted by very impressive retail sales data. Cable closes the day on its highs, just below 1.5600. It brole its 200-day moving average today as well as critical resistance in the 1.5500/20 area. That area provided support on an intraday pullback today. EUR/GBP slumped hard, helping further cap EUR/USD.
AUD/USD pulled back on weakness in commodities and a slight cool-off is risk sentiment. It finds support in the 0.9000/10 area on pullbacks.
USD/CAD flirted with stop-loss sell orders below the 1.0250 level before rebounding sharply as the risk rally faded. It ends the day at 1.0365.
Hey Jamie,
This is a bit off topic but I was wondering the lifetime Euro low? Was is .8352 or .8227?
Thanks,
Matt
Hey Matt Euro lifetime low was .8225 on 26/10/2000 found it here: http://www.eu4journalists.eu/index.php/dossiers/english/C23# under exchange rate devopment.
Good afternoon, Sean. It doesn’t seem to be mentioned, so please note that last night’s equities action in the US now means that both the “Dow” and the NASDAQ have crossed upwards and out of their “death cross” positions (technically, probably the best “buy signal” US equities will have this summer) and only the S&P remains under its 200-day moving average.