European FX new 11 May 2018
- Chart in focus: USD/CAD attempts break of recent lows
- US crude oil back up to 71.50 again
- Putin and Merkel: Discussing Iran nuclear deal
- EUR/USD approaches 200 MA after bid from large option
- Divide and conquer: Theresa May splits cabinet to sort customs deal
- China Money supply, new yuan loans, fx deposits and social financing figures
- Chart in focus: USD/CAD
- European Stocks set to continue gains
- US crude catches a quick bid : up to 71.50
- Nuclear deal fallout: Iran asks, 'what about the Airbus deal?'
- RBS CEO Mcewan: Branch closures are 'possible'
- 40% of German companies expect foreign economies to improve over next 12 moths
- EUR/USD catches small bid off 1.1900
- Chance of a Bank of England hike this year edges higher
- US crude oil at 71.21. Next move for oil to be crucial
- European equities opening: overall slightly positive note to start the day
- Spain April preliminary CPI m/m 0.8vs +0.8% expected
- Luxembourg Financial minister on June Eurozone meeting
- Iran's foreign minister on the air waves
- EUR/USD underpinned today by large option expiry (2.4bln).
- Eurostoxx futures +0.3% in early European trading
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.
