Forexlive Americas FX news wrap: USD supported by risk aversion flow
Forex new for North American trading on January 11, 2021
- Fed's Barkin projecting 'hurt' for the US in Q1 and H1 but H2 will be stronger
- US major indices close lower led by the NASDAQ index
- The USD is higher but off the highs
- WTI crude oil futures settle at $52.25
- Fed's Bostic: The Fed is not locked into a 'paradigm', changes possible
- Biden will announce the cost of his stimulus plan on Thursday
- US 3-year notes sell at 0.234% vs 0.231% WI
- DoubleLines Gundlach: US market leadership is reversing
- Pelosi: House will consider 25th amendment legislation
- Major European indices end the session with declines
- Bitcoin reaches down toward $30K but finds buyers. What are the charts saying after today's sharp fall?
- UK's Sunak: We should expect economy to get worse before it gets better
- BOC Q4 business outlook survey: Futures sales +48 vs +39 prior
- BOE's Tenreyo: Work on feasibility of negative rates is still in progress
- Johnson: This is a very perilous moment
- The USD is the strongest and the NZD is the weakest as NA traders enter for the day
The USD moved higher in trading today as levels of risk aversion from Covid, fears from potential impeachment proceedings hurting stimulus hopes/stocks. Higher rates and traders exiting bitcoin (and into the dollar) after the run to $42,000 last week also helped to give a boost to the greenback..
A snapshot of some of the markets near the end of day is showing:
- Spot gold, down $4.04 -0.22% at $1844.95. The price of Gold rebounded from a low of $1817.49 as the dollar came off higher levels earlier in the North American session
- Spot silver help $0.46 or -1.84% to $24.95. The high reached $25.51. The low extended to $24.34
- WTI crude oil futures fell $0.09 or -0.17% to $52.15. It's high reached $52.70. The low reached $51.50.
- EURUSD. The EURUSD fell to a low of 1.21315. That got within 3 pips of the December 21 swing low at 1.21285. The price bounced off that support level but stalled the rally near a swing area between 1.21719 and 1.2177. The price is trading between the support and resistance levels at 1.2150 into the close
- GBPUSD. The GBPUSD fell but found support buyers against the 50% retracement of the move up from the December 21 low at 1.34448 (low reached 1.3449). The price bounced to test a swing area between 1.35212 to 1.35347 and found sellers. The price is trading at 1.3512 into the close. Get above 1.35347 would increase the bullish bias. Stay below and get back below 1.3500 and we could see more downside probing in the new trading day
- USDJPY. The USDJPY closed higher on the day, but retraced around 1/2 of the gains in the NY session. The low price in the NY session reached 104.06 - just above the 104.00 natural support level. Stay above that level in the new day, keeps the buyers in firm control. The 100 day MA for the USDJPY is up at 104.717. The price has not closed above the 100 day MA since June 8th. Be aware.
- AUDUSD. The AUDUSD - like the USDJPY - retraced about 50% of the move lower, but run into resistance against the 200 hour MA at 0.77207 level The price is trading at 0.7695 into the close. If the price is to go higher, getting above the 200 hour MA is a minimum requirement. If not, the sellers continue to hold onto control.