Forex new for NY trading on September 11, 2018.
- Private oil data shows than bigger than expected draw in crude oil inventories
- The major indices close higher and reverse earlier losses
- CAD higher still, USD/CAD below 1.31 (and counting)
- Oil - heads up for the inventory data due around the bottom of the hour
- Trump: Trade talks going well. Canada wants to make a deal
- You can't lie to people and steal from them just because you called it an ICO
- Here's what a recession really looks like
- 10 years after the crisis: Wall Street always wins
- Freeland: More constructive and productive talks
- US sells 3-year notes at 2.821% vs 2.820% WI bid
- Ray Dalio: We have two years left then it's all going to fall apart
- European major indices close with mixed results
- China reassures US companies it won't retaliate against them - report
- The Atlanta Fed GDPNow estimate falls to 3.8% from 4.4% last.
- Theresa May spokesman: Confident of getting good Brexit deal
- Florence remains Category 4 hurricane and is expected to strengthen further later today
- Remembering....
- US July JOLTS job openings 6939K vs 6675K expected
- US July final wholesale inventories +0.6% vs +0.7% m/m expected
- There isn't enough psychology in the economic models
- The US small business report is a tour-de-force, except for one spot
- The CHF is the strongest, while the AUD is the weakest as NA traders enter for the day
In other markets near the US close is showing:
- Spot gold is higher by $1.51 or 0.13% $1197.36
- WTI crude oil futures trade up $2.41 or 3.54% at $69.92. The price of crude is seeing a late day surge on the back of the private inventory data which showed a larger than expected draw
- Bitcoin on the Coinbase exchange fell $50 to $6249
in the US and European stock markets today, the US major indices ended the session was solid gains. The European major indices are more mixed. Below is a summary of the percentage changes (and high and low ranges) of the major indices and North America and Europe. The biggest gainer was the NASDAQ index of 0.61%. The biggest loser was the Italian FTSE MIB which fell -0.31%.
Bond yields were mostly higher in both the US and Europe. In the US yields rose by 3.7 basis points for the 2 year and by 4.6 basis points for the 10 year benchmark. The 2-10 spread rose by 0.9 basis points to close to 23 basis points.
European 10 year benchmark rates were higher with Italy and UK rates rising the most. The Portugal and Spanish rates were up the least.
Today, is the 17th anniversary of 9-11. You can read my post remembering three friends who died on that day.
In other, non market related news, Hurricane Florence looks like it might be a Category 4 storm when it slams into North Carolina on Friday. It should bring life threatening storm surge and flooding to the Carolina's and the potential for billions of dollars of storm related damage.
IN the forex market, the CAD was the strongest currency (thanks to a late day comment from Pres. Trump). The JPY was weak at the start of the day and is ending as the weakest currency at the end of the day.
The CAD got its late day boost from a comment from Trump saying "Trade talks going well. Canada wants to make a deal" That send the USDCAD below its 200 hour MA at 1.3126 and down toward it's 100 day MA at 1.3035. The low reached 1.3040, before bouncing up to 1.3058 near the close. Prior to the comment the pair had stalled the fall against the 200 hour MA.
The USDJPY did most of its bullish run in the Asian and early London trading. Nevertheless, the dip in the US session to a low of 111.27, did find support against a lower trend line on the hourly chart, before starting its run to new session highs at 111.63 into the close. A stronger stock market along with higher yields in the US debt market, up to support the pair and push it higher.
The EURUSD had a rollercoaster, up and down and up again day. The price action - during its gyrations - traded above, back below, and into the close, back above its 100 and 200 hour MAs around the 1.1601-064 area. The 50% of the move down from the August 28 high comes in at 1.1629. A topside trend line cuts across at 1.1643. Those are targets if the bulls can keep the price above the 1.1600 area.
The GBPUSD bounced off its 100 hour MA yesterday and bounced. Today, that MA was sniffed and the price bounced once again (from 1.29608 to 1.3039. There is continued hope in the comments from Brexit officials.
The AUDUSD and the NZDUSD continue to grind to new 2018 lows but not run lower. The $200B of US tarriffs are ready to for enactment, but Pres. Trump has not pulled the trigger yet. One thought is that the Pres. is reluctant to upset the apple cart ahead of the US election. Does that help the AUD and NZD? They both remain below their 100 hour MAs. The AUDUSD MA is at 0.7142 (the price is at 0.7118). The NZDUSD 100 hour MA is at 0.6552 and moving lower (the price is at 0.6522). If the bulls are to take more control, getting above those MAs will be eyed in the new trading day.
Good fortune with your trading.
