Forex news for NY trading on November 10, 2016

  • US major stock indices end mixed. Industrials outperform.
  • Forex technical analysis: USDJPY looking good for a close above the 200 day MA
  • The Donald lifts the dollar: Timing the target on EUR/USD - Citi
  • US crude oil futures settle at $44.66 per barrel
  • Major auto makers want Trump to create presidential advisory committee
  • Trump transition team says will dismantle Dodd Frank
  • Lacker says "Greater fiscal stimulus would imply a higher interest rates"
  • Fed's Lacker: Case of rate rise is relatively strong
  • US sells 15B 30 year bonds at 2.902%
  • Forex technical analysis: GBPJPY moves above 100 day MA. Key break.
  • And now the pound is the darling of the day
  • Stocks are up, but the tech sector, not so much....
  • ECB's Constancio: We can expect by spring next year, that headline inflation will be well above 1.0%
  • A strong open for stocks - All hail president Trump
  • Fed's Bullard repeats he wants one hike then an extended hold
  • September 2016 Canada new housing price index 0.2% vs 0.2% exp m/m
  • US initial jobless claims 254k vs 260k exp
  • The strongest and weakest currencies as NA traders enter for the day
  • $1bn said to be sitting on the offer at 107.00 in USDJPY

In other markets:

  • S&P index +0.20%. NASDAQ composite index -0.81%. Dow industrial average +1.17%
  • 10 year bond yield 2.1378%, +8 basis points
  • Spot gold $1259.42 -1.45%
  • Crude oil futures $44.33, -2.08%
  • The strongest currency is the GBP. The weakest currency is the JPY.
  • The USD was up - rising against the EUR, JPY, CHF, CAD, AUD and NZD but falling against the GBP

Today was a good day for the pound. A snapshot of the % changes vs the major currencies shows it rose over 1% versus each. Catalyst for the move? It seems the market is feeling more comfortable about change. It has not taken long to reverse the "world is going to end if Trump becomes President" idea. And that seems to have rubbed off on the sentiment about the GBP pairs which are still trading more near post-Brexit lows.

The largest gainer n was versus the JPY (+2.28%). The GBPJPY today rose - and will close - above it's 100 day MA for the 1st time since May 30, 2016. That break was reversed the very next day. So it was more of an aberration than a "true break". For all of 2016, there were only 2 days where the GBPJPY closed above the 100 day MA level. Today makes it 3. Needless to say, stay above that MA going forward (no one day phenomena please), and the upside has further to explore (see post here)

The EURGBP was an other pair that saw flows into the GBP. This currency pair fell by 1.29% (GBP higher) and in the process fell below the August and September double tops at 0.8717 level (now a risk level for shorts). This pair targets the 100 day at 0.8510 in the new trading day if the momentum lower continues.

The GBPUSD was also supported in trading today - rising about 1.12% and trading at a new high post the GBPUSD crash day back on October 7th. The pair is moving closer to the levels seen right before that crash near 1.2600. Remember post-Brexit, the GBPUSD traded as high at 1.3533. The initial low was at 1.2791. At 1.2545, we are still a ways away.

In other pairs today, the USDJPY is closing above its 200 day moving average for the first time since December 17. Moving average comes in at 106.536. The pair is closing at the 106.80 area. Traders will want to see the price stay above that moving average in the new trading day..

The EURUSD spent the NY session range trading between resistance at 1.0910 (the high reached 1.0906) and support in the 1.0850-58 area (the low reached 1.0864). The day is ending with the pair in between those extremes at 1.0886. Which way are we going to break?

The NZDUSD held support in the New York session against a trend line at the 0.7174 level and had a modest bounce. There is a cluster of resistance between 0.7200 and 0.7221. Since bottoming, it seems the market traders are more comfortable buying the dip. Just my opinion.

Below is a snapshot of the daily % changes of the major currency pairs vs each other and each currencies relative ranking.

Have a great new trading day traders!