Forexlive Americas FX new wrap: EUR pairs stumble lower and close near day lows
Forex news for NY trading on February 10, 2020
- Fed Harker: Fed should hold rates steady for a while
- WTI crude oil futures settle back below $50 a barrel at $49.57
- Quinnipiac latest poll has Sanders 25%, Biden 17%, Bloomberg 15%
- North Korea continue to enhance its nuclear and ballistic missile program
- 10-year Treasury yields near 1.50% again
- European shares start the week with modest declines
- IMF staff report: Coronavirus poses risk to Japan's economy. Critical of BOJ inflation stubbornness
- US Justice Department indicts 4 hackers in Equifax break
- Canada FM Morneau: Coronavirus will have a real impact on Canada
- World Health Organization team of experts has arrived in China
- Apples Foxconn has received approval to resume partial production in Shenzhen
- Some details of Trump budget to be released
- British doctor in Brighton closes office after staff member gets coronavirus
- Canada December building permits +7.4% vs +2.8% expected
- Fed's Bowman sees "very favourable" US outlook of moderate growth, low unemployment
- Canada January housing starts 213.2K vs 205.0K expected
- The GBP is the strongest and the JPY is the weakest as NA traders enter for the day/week
In other markets near the end of the day:
- Spot gold rose $2.62 or 0.17% at $1573.15. The high price extended to $1577.05 the low price fell to $1568.06. The current level is near the midpoint of that trading range.
- WTI crude oil futures trading down $0.70 or -1.39% at $49.61. The high price extended to $50.49. The low price fell to $49.42.
It is another stellar day in the US stock market with the NASDAQ index and S&P index both closing at record levels. The NASDAQ index continues its over performance rising by 1.13%. That outpaced the gains in the S&P index and the Dow industrial average. For the year the NASDAQ index is up 7.31%.
The final numbers for the US stock market is showing:
- NASDAQ index up 1.13%
- S&P index up 0.73%
- Dow industrial average up 0.6%
The European equity market did not fare as well. The Italian FTSE MIB rose by 0.12%, in the Spain's Ibex was near unchanged at +0.05%. The other indices were lower (see percentage changes of the major European and North American stock indices below).
US debt market today, yields are lower by -1.8 to -2.8 basis points.
In the forex market, the EUR continued it's slide and was the weakest of the major currencies. The AUD was the strongest today.
The EURUSD has now fallen for 6 consecutive days. That has not happened since August 26 to September 2, 2019. During that time the price fell from a high price of 1.1163, to a low of 1.09574 (205 pips).
The current six-day run lower has taken the price from a high price of 1.10946 to a low of 1.0907 (187 pips). Will tomorrow bring day number 7?
Technically, the EURUSD fell below swing low levels from September 30 September 12 at 1.0923 to 1.0926. With the price currently trading at 1.09105, that area will be close risk in the new trading day. Another risk level for shorts would be at the 1.0941 level. Swing lows from October 3 and October 8 along with the low from Friday's trade, were centered at that level. Stay below will keep the bears firmly in control in the new trading day. On the downside the swing low from 2019 comes in at 1.08787.
The EURJPY fell to its lowest level since November 22 when the price reached 119.63. The low today reached 119.673. The price decline to take the pair below its 2019 lows between 119.757 and 119.801. If the price can remain below those levels in the new trading day, that would be the best case scenario for the shorts. On the downside the November 22 low price is the next target at 119.633 followed by the November 14 low at 119.246.
For the EURGBP, it fell -0.49% and in the process, fell below its 100 hour moving average (currently at 0.84742) and its 200 hour moving average at 0.84625. The low price extended to 0.8442 before consolidating into the close (it is currently trading at 0.8450). On Friday last week the price stalled right at its 200 hour moving average and bounced back higher. So falling below that level today has tilted the bias more to the downside. That moving average will now be resistance in the new trading day.