Forex news for NA trade on May 1, 2018
- More Poloz: GDP data this morning were encouraging today
- USDJPY extends to new session highs. Moved closer to the 200 day MA
- US April total vehicle sales 17.15M versus March 17.48 M
- US crude oil settle lower on the day but break below floor fails
- BOC Poloz Q&A: Concerns are interest rates are really low compared to neutral
- Expect to complete negotiations on aluminum/steel tariffs within 30 days: WH
- BOC publishes new framework for how it manages stability risks
- USDCAD moves back down below 100 hour MA on Poloz comments
- Poloz repeats that BOC becoming more confident that less stimulus will be needed over time
- Mexico says it will apply reciprocal measures to any US tariffs
- The GBPUSD escapes from the up and down "box"
- May to back hybrid 'customs partnership' that critics call 'bonkers'
- Lighthizer: If NAFTA deal not made in two weeks, 'we're on thin ice'
- Japan to delay primary fiscal surplus goal by 5 years - report
- Lighthizer: I have 'no idea' when we will get a NAFTA deal
- Democracy is no longer a romantic idea in China
- USDJPY corrects to break out ceiling. Buyers leaning against the level.
- USDCAD trades in a red box (after a failed break earlier today)
- Canada's Freeland: NAFTA negotiations and metals tariffs 'completely separate'
- Former Fed vice-chair Fischer says geopolitics, not economy is worrying him
- May forex seasonals: From bad to worse for AUD/USD
- Goldman Sachs agrees to pay $110 million fine for forex misconduct
- Wilbur Ross says NAFTA talks will go on hold until late-2018 if no deal soon
- Ethereum could be hit hard if it's declared a security
- New Zealand GDT price index -1.1%
- US Commerce Sec Wilbur Ross says he has 'some hope' for trade deal with China
- April ISM manufacturing index 57.3 vs 58.4 expected
- US March construction spending -1.7% vs +0.5% expected
- US final April Markit manufacturing PMI 56.5 vs 56.5 expected
- Canada April Markit manufacturing survey 55.5 vs 55.7 prior
- Canada February GDP +0.4% vs +0.3% expected
Markets:
- Gold down $10.82 or -0.82% at $1304
- S&P 500 up 6.75 points or 0.25% at 2654.80
- US 10 year yields up 1.31 basis points to 2.966%
- WTI crude down $1.12 or -1.63% at $67.47
In the forex market today, the USD is the strongest of the major currencies, the GBP is the weakest.
A new month with most of continental Europe closed for May Day.
The month started with more dollar strength. The USD was the strongest of the major currencies today, rising by the most vs the GBP (up 1.07%) and the EUR (up 0.70%).
The GBPUSD continued its fall today on the back of weaker than expected manufacturing PMI data in the London morning session. Technically, the price fell below the 3 plus month low from March 1 at 1.3711. That was the kick the pair needed and the price fell to a lowest level since February 12th (the low reached 1.3587). We are trading at 1.3615 on the modest rebound. The next target on the downside for the pair is the 200 day MA at 1.35269. That level should slow a fall on the first look, but don't underestimate the fall below the 1.3711. That was a key break.
The EURUSD also tumbled lower today - falling from a high of 1.2084 to a low of 1.1982. The move lower has taken the price below its 200 day MA at 1.20085. That too is a key break for the technicians. The pair is trading at 1.1992 near the day's close. There is some trend line support at the 1.1986 on the daily. A break below keeps the selling momentum going. Bears are in control in this pair.
The USDJPY trading near the high for the day near the close. The low came in a 109.24, while the high reached 109.89 in the last hour of trading. The price is above the 50% of the move down from the November high at 109.664. The price is currently above that level. The 200 day MA comes in at 110.216 and will be targeted in the new day on continued dollar buying.
The USDCAD had an up and down day but in the NA afternoon session, BOC Poloz was more upbeat about rates going forward. The pair remains mired in a 1.2810 to 1.2900 range (roughly the 6 day range). The current price is trading at 1.2848 right near the 100 hour MA at 1.2851. The pair needs to get outside the range.
Apple announced earning after the close and EPS beat estimates. The company announced a 100 billion buyback and increased the dividend by 16%. The stock is taring up 3.39% in after hours trading. The stock trades at around $175. The range over the last 3 or so months is $150 to $180. The low this month bottomed near $160 area. Can the price get back above the $180 level?
The FOMC decision tomorrow where no change is expected (no presser either). The focus will nevertheless be on the statement.
