Forex news for North American trading on September 24, 2021
- The House will vote on infrastructure bill on Monday and it will be contentious
- Major economic releases and events next week
- Crude oil futures settle at $73.98
- The fake out then breakout in 5-years is pointing to larger moves elsewhere
- Baker Hughes US oil rig count 421 vs 411 prior
- Reports of the death of lumber may have been premature
- MUFG trade of the week: Sell GBP/USD
- European major indices close the day with declines
- Evergrande investors in the US still haven't received interest payment - report
- Iran foreign min: Negotiations will resume 'very soon'
- Bitcoin moves back down toward the 100 day moving average on China bitcoin comments
- Fed's George: Criteria for bond taper has been met
- US August new home sales 740K vs 714K expected
- US 10-year yields challenge the Asian high
- More from Mester: Asset purchases are not doing as much as the used to
- Could the Huawei and Meng Wanzhou drama be about to end?
- Fed's Mester: Sees conditions for rate liftoff met by the end of 2022
- The USD is the strongest and the AUD is the weakest as NA traders enter for the day
The CAD and the USD is ending the day as the strongest of the major currencies as the flow of funds into the CAD were by higher oil prices, and the US dollar continues to be supported by higher yields and perhaps a little flight to safety (although stocks did recover most of their losses by the close).
The NZD is the weakest along with the AUD. Evergrande missed making payments to some of its bondholders, but technically has 30 day grace period to correct the situation. However, that is not expected. Although there is some anxiety, the market is becoming more comfortable with the idea of a default. Nevertheless, currency pairs like the NZD and the AUD took the brunt of the selling pressure today in the currencies.
For the EURUSD, it fell back below its 100 hour moving average at 1.17248 and was able to stay below that level through out the US session. The pair also did find support near the 1.1700 level (there is a swing area from 1.16996 to 1.17054). Close support held. Close resistance held. Next week traders will be eyeing those levels for the next bias clues.
The GBPUSD is closing near the lows for the day and just below the 100 hour MA at 1.36713. The pair this week traded toward the August 20 low at 1.36016 (the low reached 1.3608 on Thursday and shot higher after the BOE more hawkish rate statement on Thursday. The high price stalled right at the 200 hour MA and found willing sellers. Today, the price was able to extend below the aforementioned 100 hour MA at 1.36713. That sends the pair into the weekend with a bearish bias.
The USDJPY broke to the highest level since August 11 today. The high reached 110.787 which was just short of that high at 110.793. The price is currently trading at 110.74, now far from that level, but will need to shove above the level next week, if the bullish bias is to continue unabated.
The USDCAD moved higher and then back down, largely helped by the downs and ups in crude oil. The price of crude oil is closing up $0.63 at $73.93 after trading as high as $74.27, but also traded as low as $72.81 intraday. The swing lows from September 19 and September 23 is the next major target on further selling at 1.2633 to 1.2638. In the new week, that swing area would need to be broken to increase the bearish bias. The pair is currently trading at 1.2644.
The AUSUSD moved below its 100 hour MA at 0.7260 to a low of 0.72355, but has rebounded back toward the 100 hour MA into the Friday close. That MA will be the close barometer for the buyers and sellers in the new week.
In other markets today:
- Spot gold is trading up $5 at $1747.70
- Spot silver is trading down ten cents or -0.42% at $22.38
- Crude oil is trading at $73.94 into the close. That is up $0.64 or 0.87%
In the US stock market, the Dow and S&P closed higher. The Nasdaq closed lower but closed near session highs.
- Dow rose 33.18 points or 0.10% at 34798.01
- S&P rose 6.48 points or 0.15% at 4455.47
- Nasdaq fell -4.53 points or -0.03% at 15047.71
In the US debt market, the 10 year yield moved to a intraday high at 1.466%. That was the highest since early July. The yield for the benchmark issue traded as low as 1.297% this week, before reversing and going higher
Thank you for all your support. Have a great weekend.