Forex news for Americas trading December 18, 2015
- US stocks end at the lows for 2nd day in a row.
- BOC's Poloz: Q4 growth is "looking softer" than Q3
- Commitment of trader report: EUR shorts trimmed 12K. CAD shorts increase
- Feds Lacker speaks to reporters after panel discussion
- Key economic events and releases next week
- Baker Hughes oil rig count 541 vs 524 last week
- Here's the top 5 FX market views for 2016
- Winding down to the holidays
- European stocks end the week on a down note
- Kansas City manufacturing index -9 vs. 2 estimate
- Here's what to expect when Spain goes to the polls this weekend
- Markit PMI services 53.7 vs 55.9 est
- Canada Oct. wholesale trade sales -0.6% vs.0.1% est.
- November 2015 Canadian CPI 1.4% vs 1.5% exp y/y
- Minds over machines and the BOJ mess
Another rotten day for the stock market. Triple witching day. Some stock downgrades (Disney the day Star Wars comes out - really - and Boeing). Oil price was higher than moved lower...again. The dollar was on the defensive after JPY volatility after the BOJ monetary policy statement overnight.
Anyway, the was a major dollar catalyst this week. After a rally after the FOMC hike on Wednesday, the Dow went from 17749 close on Wednesday to 17128.55 close on Friday. That is a cool 620 point decline in two days. The S&P lost 68 points. Those are big moves.
As far as economic news. there was no economic news out the US today. Canada had wholesale trade sales and CPI come out weaker than expected and that sent the USDCAD higher to the 1.4000 level. The price of the pair topped on the exact level and reversed as profit takers entered. When oil prices started to fall again, the CAD weakened. Gov. Poloz late in the day said Q4 growth was looking softer. So although the dollar was lower today, it was the Canadian dollar which was weaker than the US dollar. Let's just say, it was not a good day for the dollar (Canadian and US).
For the USDJPY, most of the damage to the downside was done after the BOJ decision sent the pair (and all the JPY crosses lower). You can read all about it here, but let's just say, the whole process was not done the best.
The AUDUSD and the NZDUSD moved higher in the NY session. Although energy prices were down, the CRB index rose 0.85% for the day. Industrials, livestock, precious metals and soft commodities all were higher. However, the rally higher in both the AUDUSD and the NZDUSD stalled right around the 100 hour MAs at 0.7183 and 0.6746 respectively. Next week, those level will be eyed from a technical perspective.
The EURUSD today found support for the 2nd day in a row near the 100 bar MA on the 4-hour chart. That MA came in at 1.0810 area today (NY session low at 1.0808). The stock market swoon kept the dollar on the defensive and the EURUSD inched higher and higher. Toward the close, the pair reached new day highs at 1.0874. For the week, the EURUSD reached a peak against the 100 day MA at 1.1055. and a floor at the 100 bar MA on the 4-hour chart at 1.0800. We are still closer to the bottom, but the two days of pounding support, could not break support. Just saying.....
The GBPUSD waffled higher and lower without much conviction. For the week, however, it tumbled from a 1.5228 high on Friday, to a 1.4864 low on Thursday. Taking Friday off was acceptable.
Next week we will be off. Wishing everyone a joyous and peaceful holiday season.