Forexlive America's FX news wrap: Not a good day for coronavirus statistics
Forex news for NA trading on June 24, 2020
- Stocks fall on coronavirus concerns. NASDAQ snaps the longest winning streak of 2020
- Earthquake reported in Japan off Chiba
- Fed's Bullard: Sees robust recovery in the 2nd half of the year
- Fox's Gasparino: $1T Covid -19 stimulus package is taking shape
- Apple to close 7 stores in Houston amid rising coronavirus spikes
- WTI crude oil futures settle at $38.01
- US CDC coronavirus statistics for the day show an increase in deaths and cases
- This is what a V-shaped recovery looks like
- Canada's FM Morneau: Canada continues to be a stronger financial position than others
- More from Fed's Evans: No one at Fed is thinking about negative interest rates
- US sells $47 billion of 5 year notes at 0.330% vs. WI at 0.336%
- Fed's Evans: Expects a broad economic recovery, but will take time
- Fitch downgrades Canada to AA+
- White House to end federal support for COVID-19 testing
- Major European shares tumble on "risk off" trading flows
- New York, New Jersey and Connecticut order visitors to quarantine
- Florida coronavirus cases 5.3% vs 3.6% seven-day average
- Weekly crude oil inventories +1442K vs +1500K expected
- Texas coronavirus hospitalizations +7.3%
- Financial stocks struggle ahead of Fed stress tests
- California COVID-19 cases rise 7149 vs 5019 yesterday
- IMF sees 2020 global contraction of -4.9% vs -3.0% in April forecast
- US April FHFA house price index +0.2% vs +0.3% expected
- It's not the lockdown that matters, it's the fear of the virus
- The USD is the strongest and the NZD is the weakest as NA trader enter for the day
- Spot gold is trading trading down -$4.17 or -0.24% at $1764.24. The high for the day reached a new high going back to 2012 at $1779.53. The low extended to $1760.67
- WTI crude oil tumbled $-2.28 or -5.65% to $38.09. Coronavirus concerns and another increase in crude oil inventories helped to depress the price.
- Expects broad economic recovery but will take time
- Economic outlook is more uncertain at any time in his career
- He forecasts a GDP returning to precrisis level later in at 2022
- He expects intermittent outbreaks, made worse by too fast reopenings, to hold back to growth
- More fiscal, monetary policy action it may be necessary
- Low-wage workers in exposed industries face disproportionate pain
- It's too early to tell if surprising May jobs gains represent stronger underlying demand
Traders sold stocks with the Dow industrial average falling the most. The industrial 30 were led to the downside by Boeing which tumbled by nearly 6%. All 30 Dow stocks fell as did all 11 sectors of the S&P. For the NASDAQ index its 8 day winning streak was snapped. Yesterday the NASDAQ index closed at a record level, but not today.
- S&P 500 -80.96 points or -2.59% at 3050.33
- Nasdaq -222.20 points or -2.19% at 9909.16
- Dow -710.16 points or -2.72% at 25445.94
Below are the percentage changes and percentage ranges for the major indices in North America and Europe.
IN the forex market, the flight to safety flows saw the US dollar as the safe haven. It was the strongest currency of the day. Investors shun the NZD and AUD. The Reserve Bank of New Zealand was modestly dovish after its interest rate decision earlier in the Asian session.
A look at some of the major currencies from a technical perspective are showing:
- EURUSD: The EURUSD it is closing the session below its 200 hour moving average and 50% retracement 1.12577, but just above its 100 hour moving average at 1.12493. Those moving averages will be barometer is for the buyers and the sellers. Move below the 100 hour moving average at 1.12493 and the bears will be more in control. Find support buyers against the 100 hour moving average and move back above the 200 hour moving average of 50% retracement at 1.12577, and we could see the start of a rebound back higher.
- GBPUSD: The GBPUSD fell below its 100 hour moving average 1.24436 in the New York session and rotated down toward 1.2418. Earlier in the day the pair fell below its 200 hour moving average at 1.2498 and its 100 day moving average 1.2491. Being below each of those moving averages has tilted the bias back to the downside. Stay below the 100 hour moving average at 1.2443 would keep the bears/sellers content.
- USDJPY: The USDJPY moved above its 100 hour moving average at 106.817 earlier in the New York session and is ending the session just above its 200 hour moving average at 107.034. The price is currently trading at 107.06 minutes before the end of the trading day. If the price can stay above its 200 hour moving average that is the best case for the buyers/bulls. Alternatively, staying above the 100 hour moving average would still keep the buyers content (at 106.817).
- USDCAD: The CAD was pushed higher with the overall USD bullishness today, but God a additional boost after Fitch lowered their rating of Canada debti from AAA to AA+. Although the investment-grade remains high, it loses that status that comes with the top rated distinction.