Forexlive European FX News 11 May : Dollar down, large Option in play on EUR/USD, Oil bid

Author: Giles Coghlan | Category: News

European FX new 11 May 2018


Market data

  • DXY down 0.19% at 92.47
  • US 10 year yields down-0.18% at 2.956
  • FTSE 100 down -0.9% at 7694.10
  • Bitcoin 3.96% at 8730
  • Gold +0.21% at 1324.36
  • Oil US crude +0.13% at 71.45

As we wind down the trading week markets have been fairly quiet during the European session. With no major data out for the US today markets have been still digesting the US CPI data miss from yesterday. US dollar index was down, yields were mostly down (apart from the 2 year yields). .

During the session we reported on price testing a large (2.4bln) option expiry on the EUR/USD. The level also corresponded with the 100 MA on the hourly chart and price was rejected and climbed higher to the 200 MA on the hourly chart where it now sits at 1.1940. Any further gains will need to climb above that level to be sustained.

The dollar index was sat beneath a key weekly support level and as markets digested the US CPI miss out yesterday the reaction during the European session was that it sold off. Further downside could accelerate off that key weekly technical level. DXY currently at 92.47

US Crude oil started the session pretty much in the middle of the range from 71.90 high's of yesterday and the 70.51 low's. By the end of the European session it was trading at 71.43 as it was steadily bid throughout the session. The jury is still out for it; e next direction

Our chart for the day was the USD/CAD which put the Weak US CPI data against the oil supported bullish CAD for a short play. At time of writing it is breaking out of the highlighted break out level at 1.2740. Enjoy your weekend.