Forex news for North American trading on December 22, 2020.
- NASDAQ and Russell 2000 close at record highs
- Pres. elect Biden: Unemployment benefits need to be extended
- WTI crude oil futures settle at $47.02
- Irish PM Martin: Thinks a deal is more likely than less likely
- Bitcoin back above its 100 hour MA. Buyers in control
- European shares recover from yesterday's tumble
- Heavy selling weighs on the euro into the London fix but it bounces afterwards
- UK reports record 36,804 virus cases
- Brexit: There is a deal on the table now but things are strained
- EU diplomat: No breakthrough in Brexit talks
- US December Conference Board consumer confidence 88.6 vs 97.0 expected
- US November existing home sales 6.69m vs 6.70m expected
- Richmond Fed manufacturing index for December 19 vs 10 estimate
- EU's Barnier: We are in a crucial moment
- Philadelphia Fed firm level business activity index 5.6 vs 5.3 in November
- US Q3 GDP (third look) % q/q annualized +33.4% vs +33.1% expected
- The CHF is the strongest and the NZD is the weakest as NA traders enter for the day
The Conference Board's consumer confidence for December came in much worse and expectations at 80.6 vs. 97.0 estimate. Moreover, the previous month was revised down to 92.9 from 96.1. That data, couple with other weak data like retail sales highlight the impact from recent Covid developments.
The good news is the him
- US lawmakers passed a near $900B relief package officially,
- hopes from Covid vaccines, and
- global liquidity has the market "hanging in there".
The NASDAQ index (up 0.51%) and the Russell 2000 (up 0.99%), both closed at record levels. The Dow and S&P (-0.21%) closed lower, however, with the Dow down around -200 points or -0.67% leading the downside for the day. European shares closed higher retracing some of the declines seen yesterday.
In the forex market, the USD is the strongest and the NZD is the weakest. The dollars safe haven bid may be in reaction to concerns about Brexit and growth in the EU as they struggle with the prospects of more slowdowns if Covid gets worse. In the UK, the hope is that the 3000 plus of lorries looking to cross into the UK will be allowed to enter tomorrow after a temporary suspension led to the chaos at Britain's major ports of call.
Technicals for some of the majors shows:
- EURUSD: The EURUSD fell below it's 200 hour MA a 1.21844 around midday in the US and moved to a low of 1.21516. The pair is trading at 1.21635 which is around the 50% midpoint of the trading range since the swing low on December 9. Say below the 200 hour MA will keep the sellers more in control. On the downside, the next strongest support target is at 1.21198 to 1.21240. That is home to swing low on the hourly chart from December 14, December 15, and December 16.
- GBPUSD. The GBPUSD also fell below its 200 hour MA in the early NY afternoon session at 1.34052. That level is also home to the 50% midpoint of the range since the high last week. With the price below, the bias is bearish. It would take a move above to ruin that bearish barometer in the new trading day. On the downside move below a swing area between 1.3283 to 1.32917 would tilt the bias even more to the downside.
- USDJPY: The USDJPY traded the last 7 hours above and below the 200 hour MA at 103.631. The chop around the area is indicative of a market that is unsure of the next run. Currently the tilt is more to the downside with the price at 103.59. Can the sellers keep the pressure on?
- USDCAD. The USDCAD traded up to the 50% midpoint of the move down from the November 13 high to the lows in December. That level comes in at 1.29297. The price backed off after the test and currently trades at 1.29076. Stay below keeps the sellers more in control.
In other markets today,
- the price of gold is trading down $16.88 or -0.90% $1859.91. That is near the low for the day at $1858.97
- the price of silver is trading down $1.01 or -3.89% a $25.15
- WTI crude oil futures are trading down $1.19 or -2.48% at $46.78
- The price of bitcoin is trading up $288 at $23,438. The high price reached $23,628.34. The low price extended to $22,380.05
