Forex news for NY trading on December 18, 2019
- NASDAQ index trades to a new session high
- US crude oil futures settle at $60.93
- More from Feds Evans: Comfortable with projection for Fed rates on hold in 2020
- Bitcoin higher on the day but runs into MA resistance
- Fed's Evans: US labor market is vibrant; Economy is doing remarkably well
- European shares end the session with mixed results
- Crude oil inventories -1085K vs -1750K estimate
- Fed's Williams on CNBC: Feels good about where the economy is going
- Canada November Teranet house price index +1.4% vs +1.0% y/y prior
- Canada November CPI +2.2% vs +2.2% y/y expected
- The AUD is the strongest and the GBP remains the weakest as NA traders enter
In other markets:
- Spot gold is trading down $1.20 of -0.08% $1475. The low reached $1470.52. The high extended to $1479.36
- WTI crude oil futures trading unchanged at $60.94. The inventory data showed a draw and oil inventories that was less than expectations at -1.085M (vs -1.75M est), but well off the unexpected build from the API data (+4.6M barrels)
The only economic data out of the US today was a -5% decline in the mortgage applications for the week of December 13. Compared to the other housing data that we saw this week including housing starts and building permits and the NAHB having index (highest level since 1999), the data was a small negative.
Canada release their CPI data which came in as expected at 2.2% YoY. However, the optics for higher inflation down the road seems to be in place. That helped to weaken the USDCAD (strengthen the loonie). The Teranet house price index also rose to 1.4% versus 1.0% YoY last month.
Feds Williams and Fed's Evans both reiterated the general thought that the economy are at a good place, and the Fed does not need to raise or lower rates.
The rest of the day was spent listening in on the debate on the articles of impeachment in the Houses of Representatives. Needless to say, partisan cases were made by each. The vote will take place later this evening with the expectations that indeed the House will vote for the impeachment of the President and send the process to the Senate for a trial. With the Senate control by the Republicans, and 2/3 vote needed to convict, the expectations are that life goes on. The president remains in office with more bad blood between the Republicans and the Democrats.
The stock market didn't seem to mind. The major indices are modestly higher.
In the forex market, the CAD was the strongest helped by bearish technicals and the CPI data a bit, the GBP was the weakest for the 2nd day in a row.
For the USDCAD, the price fell below its low price from November and low price from December at the 1.31148 level, and extended to a low of 1.3102. However, the inability to break below the natural 1.31 level has led to some covering in the North American afternoon session. The pair currently trades just above the recent lows at 1.3116. A move below the 1.3100 level in the new trading day would be more bearish for the pair. On the topside, the 61.8% retracement of the move up from the October low to the November high comes in at 1.31505. A break back above that level should see more corrective upside potential.
The GBPUSD fell to a low price today of 1.30597. That was within about 10 pips of the low from last week before the UK election results at 1.30494. The pair had already completed the lap of the move up from the point of the 1st exit poll result at 1.31388 yesterday. Today, the price stay below that level. If the 1.30494 low from last week is not broke, a move above the 1.31388 level would tilt the bias a little more into the buyers favor (at least intraday).
The EURUSD traded around its 200 hour moving average at 1.1114 but could not sustain much momentum below that level. Holding is more bullish in the new day, while a break below would be more bearish.
