Forexlive Americas FX news wrap: USD moves higher on flight into safety flows
Forex news for February 19, 2011
- EU Brexit negotiator Barnier, UK Brexit secretary Barclay had "constructive" meeting
- US stocks end the session little changed
- Gold trades below 100 and 200 hour MAs but off lows
- Crude oil futures settle at $52.41
- EURUSD dips to next target
- ECB Centeno: Euro area fundamentals still solid, despite slowdown
- Fed's Bowman speaks in San Diego, CA. US economy is in a good place
- Solid gains for European shares today
- NY Fed survey: 1 and 3 year inflation expectations remains steady
- Irelands Phillip Lane to become Eurozones next chief economist
- The North American calendar is light to start the week
- The NZD is the strongest. The JPY is the weakest at the start of the week
- White House advisor Conway says it looks like US-China getting closer to deal
- UK government spokesman: Meaningful vote on Brexit won't be this week
In other markets:
- Spot gold fell -$6.30 or -0.48% at $1308.20. A higher dollar helped to send the price of the precious metal lower. The price fell below both the 100 and 200 hour MAs turning the bias back to the downside. The $1300 level will be eyed. CLICK HERE
- WTI crude oil futures are tradingdown $.30 or -0.57% at $52.42. The high price reached $52.78 while the low extended to $51.23. The price of crude oil has not been below the $50 level since January 8th.
In the US stock market today, the major indices ended little changed and mixed with the S&P and Nasdaq up marginally, while the Dow fell by -0.21%. European shares did well with most indices up over 1% on the day.
In the US debt market, yields moved higher with the 5 year moving up the most. However, yields did dip off high levels in the NY afternoon session.
The European 10 year benchmark yields are also higher with the exception of the Italian yields which moved lower after rising last week to the highest level since December 12th.
Looking at the winner and loser in the forex market to day, the USD was the strongest, while the GBP was the weakest. Today's flows seemed to be a flight into the safety of the dollar. The GBP suffers from the fear from Brexit (and more bearish technicals). The EUR is underpressure from slower growth and a no-deal Brexit is no good for their economies too. The USDJPY trended higher today (lower JPY) helped by higher rates. The price moved to the highest level of the year.
As mentioned, technicals played a role in trading. The economic calendar was bare at the start of the week.
GBPUSD: The GBPUSD moved and close below the 100 day MA for the first time since January 21. The 100 day MA comes in at 1.2888 in the new day (closed at 1.2857). Stay below is more bearish. ON the downside, the 50% of the move up from the January low comes in at 1.28346.
EURUSD: The EURUSD fell and closed near the lows for the day. The low reached 1.1267. The price closed at 1.12747. The low today stalled just above the November 28 low at 1.1266 and just below the swing low on December 14 at 1.12688. With three lows now within 2 or so pips, gettting below that level will now be eyed. On the topside, the 1.12885 was the low from the year before today. It is now resistance.
The NZDUSD stalled at last Thursdays high twice today at the 0.6773 area. On the downside the low reached 0.67267. That was just below the Friday low at 0.67288. In the new day getting and staying below the 0.6726-28 area will put the sellers in firm control. On the topside, the 200 day MA at 0.67524 has seen the lawst three days trade both above and below. If there is a rally off the floor, traders will look at the 200 day MA as the next barometer for bulls/bears. Stay below is more bearish. Move above is more bullish.