Forex news for North American trading on January 25, 2021
- New Zealand services PMI for December: 49.2 (prior 46.7)
- US stocks have a volatile up and down trading day
- Biden: We are going to use taxpayer money to rebuild America
- Senate Minority Leader McConnell: Bidens relief plan misses the mark
- Did Melvin Capital just get a bailout?
- US crude oil futures settle at $52.77
- Italy's Conte to offer resignation to President on Tuesday
- US sells 2-year notes at record low of 0.125% vs 0.127% WI
- Italy sees deficit reaching as much as 9.2% in 2021
- Is this a mania? A bubble?
- European indices end the day sharply lower
- Lagarde: Recovery somewhat delayed by not derailed
- UK reports lowest new virus cases since mid-December
- US 10-year yields break lower, near 1.0%
- Dallas Fed Jan manufacturing index +7.0 vs +12.0 expected
- The speculative frenzy in equities is remarkable
- ECB's Lane: If favourable financing conditions can be maintained, full PEPP envelope need not be used
- Fauci says upgraded versions of vaccines needed for variants; 'worried' about second vaccine dose
- Chicago Fed December national activity index +0.52 vs +0.10 expected
- The NZD is the strongest and the EUR is the weakest as NA traders enter for the day
In other markets into the close:
- Spot gold is near unchanged at $1855.72. The high for the day reached $1867.97. The low reached $1847.30
- Spot silver is trading down $-0.14 or -0.57% a $25.34
- WTI crude oil futures are trading up $0.53 a 1.01% of $52.80
- Bitcoin on Coinbase is up $714 and $32,651.18. The price high reached $34,888. The low was at $31,687.39.
In the forex market today, the NZD is ending is the strongest of the majors followed by the USD. The CHF is the weakest with the EUR close behind.
The greenback rise from mixed levels at the start of the North American session and did close higher vs all the major currencies with the exception of the NZD (it was unchanged vs the JPY).
The dollars run to the highs in the US morning session, happened as stocks reversed early session gains in the Nasdaq, and flow of funds moved into the relative safety of the greenback. However, equity stabilized and with it, the some of the gains in the dollar were retraced. Nevertheless, overall, the dollar it is ending higher on the day.
Technically for some of the pairs:
EURUSD: The EURUSD fell below the 100 and 200 hour MAs at 1.21457 and 1.21312 respectively on the run higher in the USD. The low price reached 1.2115 before rebounding in the US afternoon. The high price, however, did find sellers near the 100 hour MA at 1.21457, but also stayed above its 200 hour moving average at 1.21312. Those levels will be barometers in the new trading day. If the price moved above the 100 hour moving average, the bias tilt more to the upside once again. If the price moves below the 200 hour MA (at 1.21312), the bias shifts more to the downside. With the price between those levels, the buyers and sellers are battling it out with no true winner.
GBPUSD: The GBPUSD is another pair that is closing between its 100 hour moving average above at 1.36816 and the 200 hour moving average below 1.36499. The price is trading at 1.3672 into the close. The pair initially move higher in the Asian session rising to a high price of 1.37228. The tumble lower took the price to the aforementioned 200 hour moving average (the low price reached 1.3648 just below the 200 hour MA at 1.36499) before bouncing higher into the close. Like the EURUSD, getting above the 100 hour moving average in the new trading day would be more bullish. Moving below the 200 hour MA below, would be more bearish.
USDJPY: The USDJPY is yet another pair that is closing between its 200 hour moving average above at 103.76 and its 100 hour MA below at 103.672. The price is currently trading at 103.716. The high price today extended to 103.93. That was just above swing highs going back to January 19 and January 20 near 103.92. Sellers leaned (as stocks moved lower), and pushed the price back toward MA levels. Selling in the final hour of trading pushed the price back between the moving averages where it closed.
NZDUSD: The NZDUSD retraced all of its Asian session gains as US stocks faltered in the North Amercan morning session. The fall, took the price down to retest the Asian session low (at the open) and the 200 hour moving average at 0.71685. The price retested that moving average on 2 separate occasions in the New York session - with each holding and leading to bounces higher. The pair closed near the 0.71973 level which was above the 100 hour MA at 0.7180 and the aforementioned 200 hour moving average at 0.71685. Stay above each, keeps the bias more positive/bullish.
AUDUSD: The AUDUSD on its run lower in the US session was able to break below a swing area between 0.7699 and 0.7703. The break sent the pair down to a session low at 0.7682. However, the pair quickly bounced and reestablish support near the 0.7700 area. The price closed near 0.7712. Stay above 0.7700 gives the buyers some hope, but be careful. The price today closed below the 100 and 200 hour MAs at 0.7734 and 0.77287 respectively.
In the US stock market today, shares traded in volatile fashion (especially the NASDAQ index). The major indices are closing mixed with the S&P up 0.36%, the NASDAQ index up 0.69% and the Dow industrial average -0.12%. Both the S&P and NASDAQ each closed at record high levels. Comments from Pres. Biden going into the close for the day on his Buy America initiative, helped to push shares to session highs for the S&P and Dow.
European shares closed sharply lower across the board. The German DAX fell -1.8%.
Below are the percentage changes and high low ranges for the major indices in North America and Europe.
In the US debt market, yields are lower and closing near lows for the day. The 10 year yield is down -5.4 basis points. The 30 year bond yield is down -5.3 basis points. The yield curve was flatter with the 2 – 10 year spread at 91.43 basis points down from 96.46 basis points on Friday.
