Forex news for New York trading on May 25, 2018

In other markets:

  • Spot gold is down -$3.70 or -0.29% at $1300.86
  • WTI crude oil is down -$3.14 or -4.44% at $76.32. Oil tumbled lower on the back of potential increase in production at the June OPEC meeting
  • Bitcoin is trading down for the 5th day in a row. It is down -$122 on the day at $7432.19

US stocks ended mixed

  • S&P was lower by -0.24%
  • Nasdaq was higher by 0.13%
  • Dow was lower by -0.24%

The US yields were lower across the board:

  • 2 year 2.475%, -3.2 bps
  • 5 year 2.765%, -4.9 bps
  • 10 year 2.931%, -4.6 bps
  • 30 year 3.092%, -3.3 bps

In the forex market today, the CHF edged out the USD as the strongest currency for the day. The CAD was the weakest.

The US durable goods had some good and some bad if you were to look at the revisions.

The Michigan sentiment (final) was weaker than expected but not by much. It remains near the highs.

The ECB was out with some headlines today talking about easing out of the QE as early as June. They also said that growth forecasts would be lowered in June but core inflation would remains unchanged.

That news seemed to be orchestrated to slow selling pressure in the EUR This week has seen the EURUSD pair move to the lowest levels since November 13th as investors exited risky bonds (especially Italian) and stock markets. Today alone, the 10 year notes in Europe saw:

  • Italian yields up 6.2 bps
  • Spain yields up 7.4 bps
  • Portugal yields up 4.6 bps
  • Greece yields up 14.7 bps

In the European stock markets:

  • Italy's FTSE MIB fell -1.54%
  • Spain's Ibex fell -1.70%
  • Portugal's PSI 20 fell -0.91%
  • Greece's ASE fell -1.98%

Meanwhile in the US,

  • There was a flow into the US debt as yields retreated by 3-4 basis points, and
  • Although US stocks did not race higher, they were mixed.

It seems the flow is more out of Europe (risk) and into the US (even with Trump doing his thing). So was the ECB chatter designed to slow/stall the EURUSD's decline? Perhaps.

However admittedly, the USD remains more supported and concerns about EUR and GBP persist as we head into the long weekend.

Some technical comments.

EURUSD

The EURUSD is falling to new session lows in the last hour of trading (low reached 1.1646). The pair is scraping along a lower trend line on the hourly chart (see chart below). The price is also moving away from the 1.1712-17 area. That was the 38.2% of the move up from the Dec 2016 low (and also a swing level) The price this week also found sellers against the 100 hour MA on Tuesday, Wednesday and Thursday. That MA is at 1.17337. The price moving away from that MA as well. Bears in control.

GBPUSD

The GBPUSD is also making a run lower and to the lowest level since November 2017 into the Friday close (bearish). The move has dipped the price below the December 2017 low at 1.32987 by a few pips. Like the EURUSD, the pair stayed mostly below its 100 hour MA and today's action moved the price away from that MA level (it is at 1.33847). Sellers remain in control and on more momentum next week, we could head on down toward 1.3186 - the 50% midpoint of the move up from the Jan 2017 low.

USDJPY.

The USDJPY completed an up and down lap. The low in the Asian session reached 109.12. The price moved up to 109.74. That was near a swing high from Thursday's trading. The move back down stalled again at 109.12. The week is closing near the middle of the day's range at 109.36. The double top and double bottom on the hourly chart, increases those levels importance in the new trading week. Look for a break above 109.74 or a break below 109.12 to help define the next move in the USDJPY.

USDCAD

The USDCAD moved above the 1.2908-36 area today and also above a trend line at 1.2950. Stay above is move bullish. Move below is more bearish now....

Have a great and safe weekend. Do something nice for someone..... Thanks for your support of FXL.

----------------------------------------------------------------------------------------------------

Trade REAL stocks and cryptos on a single platform!