Forexlive Americas FX news wrap: Retail sales beat fails to help the dollar.

Author: Greg Michalowski | Category: News

Forex news for NA trading on APril 16, 2018

A snapshot of other markets near the NY session closes is showing:

  • Spot gold of $.46 or 0.03% at $1345.88
  • WTI crude oil futures down $1.03 or -1.53% at $66.36
  • Btcoin fell $320 to $7979.
In the US stock market, the major indices rose
  • S&P index rose 21.54 points or 0.81%
  • NASDAQ index rose 49.635 points or 0.70%
  • The Dow rose 213 points or 0.87%
In the US debt market, yields rose but came off high yield levels:
  • two-year 2.37%, +2.0 basis points
  • 5 year 2.683%, +1.0 basis points
  • 10 year 2.30%, +0.3 basis points
  • 30 year 3.027%, unchanged
The big stories today were that the markets did not really care.

The bombing of Syria has little impact on stocks, bonds or gold.  You would have expected stock indices to a lower, bond yields to fall on a flight into relative safety of US debt, and for gold to move sharply higher.  What happened was that stocks had solid gains. Bond yields were higher and gold ended the session unchanged. The "one and done" aspect of the military action was largely more of a show of force than anything.  

In other news, the market also had little reaction to the 60 minute interview of Comey which was not flattering for the President, but Comey is not really a likable person. 

From an economic standpoint today, retail sales came in better than expectations (0.6% vs 0.4%. estimate) but ex auto came in as expected at 0.2%, and ex auto and gas was less than expectations at 0.3% vs 0.4% est.    

Empire manufacturing came in lower than expected at 15.8 vs 18.6% estimate.  

The USD was weaker coming into the NA session and lost more ground.  

The GBPUSD led the way, with the pair rising 0.74% into the US session close. That pair is closing near session highs.  Technicals had a play in the run higher.   The GBPUSD closed  Friday right around the key 200 week MA.  Today, the low for the day bottomed just ahead of that MA at 1.4225. The low reached 1.4226. That gave the buyers the go ahead to push higher and they did. The pair is closing right around the 2018 high at 1.4344 and at a topside trend line at that level too.  A move above that level in the new day will likely lead to more upside potential. Be aware (see chart below).

The EURUSD was also higher in trading today. It moved up to test last week's highs at 1.2395.The high reached 1.2394 in the early NA session before rotating lower and trading in a 40 pip range for the rest of the trading day.  Still, the pair is ending the session higher by 0.41% (dollar down by that amount).  

The AUDUSD had a relatively quieter day, but positioned itself between support and resistance ahead of the RBA meeting minutes and key economic data out of China (GDP, industrial production and retail sales). For a detailed look at the technicals heading into those releases, CLICK HERE.  

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