Forex news for North American trading on October 20, 2016
- US major indices end the day down a touch
- A quick technical look at the forex market: EURUSD leads the dollar higher
- US crude oil futures settle at $50.43 per barrel
- GBP: Opposing forces: How to trade them - BNPP
- US sells 30-year TIPS at 0.666%
- Trump says he would accept electoral result "if I win"
- John Podesta doesn't think much of Larry Summers
- Forex technical analysis: AUDUSD retraces to support area after weak employment/dollar buying
- Spain shines at the European close
- USDCAD keeps on trucking as it rumbles into 1.3200
- EU calls emergency meeting to save Canadian free trade deal
- The divergence trade is dead; long live the carry trade - Credit Agricole
- The tough question to answer on the ECB
- September 2016 US existing home sales 5.47m vs 5.35m exp
- Euro breaks lower and takes out the July low after ECB press conference
- Draghi gets called out for trickle down QE-nomics
- Draghi: A sudden stop in QE isn't in anybody's mind
- ECB sees no scarcity in asset purchases says Draghi
- The list of things the ECB didn't discuss
- Draghi punts to December
- Full text of Draghi's opening statement
- Draghi: ECB didn't discuss QE extension today
- Draghi: QE will run until end of March 2017 or beyond
- October Philly Fed +9.7 vs +5.0 expected
- US initial jobless claims 260K vs 250K estimate
- The strongest and weakest currencies as NA traders enter for the trading day
ECB Draghi sure sent the EURUSD on a wild ride. First there was a headline that they did not talk about extending QE. Fast break higher to a high of 1.1038. Then he said that a sudden stop in QE isn't in anybody's mind. Fast break to the downside. The low extended to just above the July 2016 low at 1.0910 (low reached 1.0915). A break of that level and the pair will be trading at the lowest level since March 2016.
The USDJPY tested the 100 day MA yesterday and found support buyers. Today with the better tone in the USD, the pair moved higher. Let's face it, the pair is in the middle of a 147 pip trading range from 103.16 to 104.63 that has confined the pair over the last 7 trading days. The midpoint is 103.89 and we are trading at 103.99 - just 10 pips away. Nevertheless being above the 50% and also above the 100 and 200 hour MA is more bullish.
The AUD is the weakest currency today after weaker than expected employment data and the overall stronger USD. The pair retraced close to 50% of the recent move higher (from the October 13th low to the high today) at 0.76198. The 200 hour MA is at 0.7612 and rising. That is the support that will need to be broken if the pair is going lower. Resistance comes in at 0.7654 in the new trading day (100 hour MA).
The GBPUSD is lower on the day but off the lows at 1.2209 (also equals the 61.8% of the move up form the October 17 low). The 100 and 200 hour MA are converged at 1.2243 and that will be a bullish above/bearish below line for today's trading
In other markets today:
- Spot gold down $3 to $1266
- US 10 year yield up 1 basis point to 1.7521%
- WTI crude oil down -$1.17 to $50.43
- S&P spot index down -0.14% to 2141.34
Looking the strongest and weakest currencies near the end of the trading day shows the USD is the winner while the AUD is the weakest.
It's Friday in the Asian Pacific region of the world. That means activity can be choppy as traders square up for the weekend. It also means, I can wish you all a happy and healthy weekend and thank you for your support.
