Forex news for NY trading on December 27, 2018
- What a turnaround. Stocks close near highs.
- Crude oil futures settles at $44.61
- Stock market selling intensifies again but watch the close
- US treasury sells $32 billion of 7 year notes at 2.68%
- European equity close: Sour day for stocks
- US December Conference Board consumer confidence 128.1 vs 133.7 expected
- Watch out for strong US dollar buying on month-end rebalancing
- US October FHFA house price index +0.3% vs +0.3% m/m expected
- USD/CAD hits fresh 20-month high as oil slips, stock futures slide
- US weekly initial jobless claims 216K vs 216K expected
- <a style="background-color: rgb(255, 255, 255);" href="https://www.forexlive.com/news/!/the-snapshot-of-the-strongest-and-weakest-currencies-at-the-start-of-na-session-20181227" target="_blank" title="CHF is strongest. CAD is the weakest The snapshot of the major strongest and weakest currencies is showing the CHF is the strongest while the CAD is the weakest. The USD is mixed with gains vs the CAD, AUD and NZD and declines vs the EUR< JPY and CHF. ">The snapshot of the strongest and weakest currencies at the start of NA session
A summary of markets is showing:
- Spot gold up $7.86 or 0.62% at $1275
- WTI crude oil is down -$0.53 or -1.13% at $45.70
In the European stock market, major indices ending the session with the German Dax leading the declines. In the US, stocks closed near session highs after being down (and down big) with just an hour and 45 minutes from the close. The Dow led the way with a gain of 1.14%. The Nasdaq lagged at +0.38% but was down over -3% at the lows. Oh what a comeback for equities. The good for the stocks is the S&P did bottom yesterday right at the 200 week MA. The bad news is that the volatility may simply be year end flows from tax and rebalancing. The government is still in shutdown with Pres. Trump digging in his heals on the border wall. The China/US clock is ticking as is the Brexit clock - both could be big negatives for global growth Trump is still on the Fed's case for hiking rates. Nevertheless, two gains in a row was the 1st in December.
In the forex, the CHF was the strongest currency coming in and got stronger as the day progressed. The CAD, AUD and NZD were the weakest on "risk off" flows at the start of the day. At the end of the day, the NZD was the weakest followed by the AUD and the CAD. This was despite the big turn around in the US stocks. The fact that the risk pairs remained the weakest, makes me a little apprehensive about the gains in stocks today.
