Session Wraps - Major Forex Headlines wrapped up by trading session

Author: Justin Low

Author: Justin Low

Forex news from the European trading session - 21 June 2018

Headlines:

Markets:

  • USD leads, GBP lags behind on the day
  • European equities lower, Italy MIB leads losses
  • Gold down 0.38% to $1,262.96
  • WTI down 1.46% to $64.76
  • US 10-year yields down 3 bps to 2.91%
  • Bitcoin down 0.27% to $6,731


The session started off with very straightforward trading with the greenback staying bid and the dollar index inching above the October resistance at 95.15. European markets opened with a hint of optimism following US trading overnight with only the DAX slightly weighed down by the fact that Daimler issued a profit warning which resulted in the autos sector falling to begin proceedings.

Then, we had the SNB and they left rates unchanged as expected but upgraded this year's inflation forecast. Jordan and co continued to reiterate that the swissie remains 'highly valued' while keeping the pledge to intervene in the market if necessary. Nothing too new there but then we got news of two euroskeptic appointments to Italy's parliament and that resulted in a spike in Italian bond yields which gave the market a bit of a scare.

Equities pared gains, Treasury yields fell, and the yen gained some traction as investors got spooked out a little. The dollar stayed bid regardless, and inched even higher on the day with euro and sterling falling to year's lows against the greenback during the session.

EUR/USD traded around 1.1540-50 levels for the most part early on but the Italian news sent it tumbling and fell to a low of 1.1509 on the day - just shy of the 1.1500 figure level where barriers are reported to be sitting.

As for GBP/USD, it's been a steady track lower ahead of the BOE meeting later as the pair started the session around 1.3150 before falling to a low of 1.3102 on the day and continues to trade near there now.

USD/CAD is one of the more quiet pairs on the day despite the fact that OPEC headlines look to confirm an output increase by tomorrow - which sent oil prices lower on the day. WTI fell to a low of $64.34 earlier but has recovered a little as the session draws to an end. USD/CAD meanwhile still trades near the highs at 1.3323 now but sits in a 34 pips range on the day.

Apart from that, the aussie is one of the surprising gainers on the day with the currency staying bid as buying in AUD/NZD continues to prop up the pair and pin down the kiwi after the New Zealand GDP figures earlier in Asian trading.

All eyes now turn to the Bank of England at the top of the hour so let's see what Carney and co has to offer to the market when the time comes.


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Author: Eamonn Sheridan

Forex and Bitcoin news for Asia trading Thursday 21 June 2018


China trade:


Oil:

News and data flow was light today but we did get a few mouths opening; from the US President (Trump at a rally), from the BOJ (board member Funo) and from China (Commerce Ministry).

The net result was some minor currency movement only.

OK, here we go.

For data the day's focus was on economic growth numbers from New Zealand, Q1 GDP coming in bang on estimates, with little impact on the currency.

President Trump addressed a rally of supporters, tailoring his message for them and thus a pretty much as expected collection of populist guff.

Bank of Japan monetary policy board member Funo spoke (see bullets above), staying on message with continued easing from the Bank. The yen did manage a few points weakness around the time of his comments, I'll give him credit but with the usual correlation/causation caveat.

USD yen chart after BOJ Funo's speech

China's Ministry of Commerce (see bullets above) comments were confronting - not backing down on promising to take steps to retaliate to US trade war moves.

Forex movements were only small, though, and mixed.

USD/JPY had some direction, putting on 25+ points or so from low to high. USD/CHF is higher also, adding on around 20 points from its late US levels.

AUD/USD had a minor wiggle, down 10, up 20, down 20 .... to be a little net lower on the session here. NZD/USD has been a more consistent loser (no offense) with a 30-odd point slide.

Gold, too, a loser, down  a few dollars only in keeping with the small moves here. EUR, GBP - both lower against the dollar also.

The  People's Bank of China set the onshore yuan lower again today, the offshore has made a new 5-month low. There are persistent expectations of cuts to come from the PBOC in the RRR, and not just for a narrowly targeted cut as we are accustomed to - the chatter is for a cut that will cover a wider spectrum of banks than usual. I posted earlier on capital outflows from China, the PBOC is walking a fine line managing easing expectations and a lower yuan.

Regional equities are mixed, the Nikkei is in the green while HK and Shanghai are down a little.

Oh - oil - there are indications from Iran they may support Saudi/Russia moves for greater oil output . 

Still to come:


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Author: Adam Button

Author: Adam Button

Forex news for North American trade on June 20, 2018:

Markets:

  • Gold down $5 to $1269
  • WTI crude up $1.15 to $66.22
  • S&P 500 up 5 points to 2767
  • US 10-year yields up 3.3 bps to 2.93%
  • GBP leads, NZD lags

Headlines weren't much of a driver in the foreign exchange market on Wednesday but the Brexit vote win for May led to a small rally in cable above 1.3200 that was beaten back shortly afterwards.

The general theme was positive sentiment as trade worries continue to be brushed off. USD/JPY edged below 110.00 in early New York trade then started a steady march higher to 110.40 and is now nearly flat on the week.

USD/CAD was another mover as it climbed to a fresh one-year high at 1.3321 despite a climb in oil prices and some constructive talk on trade from Ross and Freeland.

EUR/USD chopped in the 1.1550 to 1.1600 range and finished near the middle. Some ECB leaks didn't inspire any moves in the market.

Keep an eye on NZD/USD as it hits a session low late. It's trading at 0.6861, just above the May high of 0.6850 and with New Zealand Q1 GDP only a few hours away.

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Author: Justin Low

Author: Justin Low

Forex news from the European trading session - 20 June 2018

Headlines:

Markets:

  • AUD leads, EUR and CHF lags on the day
  • European equities are all higher
  • Gold down 0.14% to $1,272.89
  • WTI down 0.02% to $65.06
  • US 10-year yields flat at 2.896%
  • Bitcoin down by 1.05% to $6,625


The session started off with little action as markets recover from yesterday's risk-off tone. Asian equities soared into the close, propping up yen pairs with USD/JPY touching a high of 110.25 as a result. That spilled over to European trading with stocks in Europe all trading higher on the day as well.

The greenback stayed bid for the most part, as the dollar index continues to trade above the 95.00 handle. EUR/USD then inched lower towards 1.1570 levels before falling to a low of 1.1537 after ECB's Nowotny attempted to jawbone the euro. Nowotny said that the euro should depreciate against the dollar on the back of "differences in interest rate policies".

If anything, it highlights what sort of discussions take place behind closed doors in the ECB and it shows that they would prefer a lower euro in order to drive inflation higher on a consistent path. EUR/USD saw an immediate bounce after testing Friday's lows and have stayed around 1.1550 levels for the most part thereafter.

Meanwhile, cable was weighed down early in the session as it fell to year's lows ahead of the vote at the House of Commons today. It's been a steady track lower for GBP/USD though the range today remains somewhat subdued. The vote is reported to take place around 1830 GMT. You can refer to the post here for some background.

USD/JPY peaked early in the session as the Nikkei came to a close, trading to session highs of 110.25 but ran into resistance near the 110.20-25 level. Since then, the pair has been trading a little lower being almost flat on the day now as it holds near the 110.00 handle.

Apart from that, there was little action seen for the aussie and kiwi as AUD/USD trades around the 0.7390-00 levels for majority of the session. The aussie remains supported as risk sentiment improved but is struggling to make its way past 0.7400 still.

The NZD remains a little pressured as cross-selling against the AUD weighs on the kiwi after AUD/NZD broke above the 100-hour MA and trades near session highs as we move towards US trading.

In other news, there's also a bunch of OPEC headlines on the day but if you need a good understanding on what is going on then this is what it comes down to at the end of the day. Right now, Iran remains the outlier in not wanting to go forth with an increase in oil output with regards to the OPEC+ agreement. Despite that, Saudi Arabia remains confident that there will be a consensus come Friday. Oil prices have traded lower as we get into US trading later with WTI hovering near the lows now at $65.06.

Despite oil holding up relatively well earlier in the session, USD/CAD still made its way to one-year highs breaking above the 1.3300 handle. For me, it's more of a technical push and with oil prices staying subdued it's making for a good case for the pair to continue to run higher.

And to end the session, the EU decides to hit back at the US with tariffs of its own. Though, the amount in question is more of a pinch than a punch to be honest.


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