Forex news for NY trading on August 13, 2018

A snapshot of other markets at the close of the NY session is showing:

  • Spot gold fell and stayed below the $1200 level today. That was the first break below that key level since March 2017. The precious metal is currently down -$18 or -1.51% on the day with the next target the 2017 low at $1180.
  • WTI crude oil is trading down -$0.30 or -0.44% at $67.33. That was off the low at $65.71. The high reached $67.95.
  • Bitcoin is trading down -$64.09 at $6280. The low today reached $6139. The high traded up to $6544.

In the stock markets in Europe and the US, the major indices all closed in the red. The biggest decliner was Spain's Ibex at -0.75%. The France Cac was the best of the losers with a -0.04%

In the US debt market today, yields are ending the day with limited moves. The biggest gainer were up 1.3 bps.

European yields in the 10 year sector once again showed sharper runs higher in the "riskier" countries. The German yield (less risk) was down -0.6 bps, while yields on riskier Italy and Portugal debt moved up 10.9 bps and 6.8 bps respectively.

In the forex market today, the focus was more on the currencies like the USDTRY which continued to see that Lira trashed. Today the pair broke above 7.000 for the first time ever (lower TRY).

Looking at the major currencies, it was a boring day in the NY session. There were no scheduled economic releases, nor major speakers. We have to remember it is the middle of August and trader are still taking summer holidays.

The strongest currency near the close was the CHF. The JPY was the strongest for most of the day but gave back some of those gains as stocks edged lower. The weakest currency was the AUD. The USD is ending the session mixed with gains vs the AUD, NZD and EUR and declines vs the CHF, JPY, CAD and GBP. The EUR and GBP are ending basically unchanged on the day.

Market activity in most of the majors was up and down.

For the EURUSD the pair traded to a low of 1.13645 which was the lowest level since July 2017. That low got within 8 pips of the 200 week MA at 1.1356. Last week, the price fell below the 100 week MA at 1.1460. Those two MAs will be eyed by traders for the next bias clues. Move below the 200 week MA keeps the sellers in firm control. Holding that level will still have to contend with the 200 week MA.

The USDJPY fell in the Asian session and shot higher in the US session (and traded above the Friday close). The high price, however, found sellers at the 100 hour MA and a topside trend line on the hourly chart for the 6th time since August 7th. They come in at 110.89 currently. Stay below is more bearish. Watch 110.58 on the downside. That was a swing low on July 26th. A move below should be more bearish.

The GBPUSD traded in at 70 pip. The low from Friday at 1.2722 could not be broken. The low for the day reached 1.2729. The high extended to 1.2791. In between was lots of ups and downs. With three separate hourly swing lows between 1.1222-32, that area needs to be broken to go lower. Failure and the sellers take the price toward the 100 hour MA at 1.2840 area. Ahead of that is a topside trend line at 1.2801.