Forexlive Americas FX news wrap: Silver and gold (and bitcoin) and dollar selling
Forex news for North American trading on July 27, 2020
- Major indices snap 2-day losing streak and are closing near their high levels for the session.
- Silver up over 7% once again for the day
- US CDC cases rise by 61,795 vs. 64,582
- California cases 6891 vs. 8259 yesterday
- WTI crude oil futures settle at $41.60
- Senator Collins says will vote NO for Judy Shelton FOMC nomination
- US treasury auctions off $49 billion of 5 year notes at 0.288%
- US sells 2-year notes at 0.155% vs 0.146% WI
- Arizona virus situation continues to quickly improve
- Republican plan will reduce weekly unemployment benefit to $200 from $600 - report
- Florida coronavirus cases moderate but median age climbs
- Dallas Fed manufacturing index -3.0 vs -4.9 expected
- Miami Marlins cancel home baseball debut after team coronavirus outbreak
- Brexit: Barnier believes Boris Johnson wants a deal
- US National Security Advisor Robert O'Brien has coronavirus
- US June prelim durable goods orders +7.3% vs +7.0% expected
- The JPY is the strongest and the CHF is the weakest as NA traders enter for the day
Today, there was a lot of focus on markets like silver and gold, Bitcoin and the continuation of dollar selling.
Silver for the 3rd time in a week as risen by over 7%. The price is currently trading at $24.41, up $1.67 or 7.36%. The high price extended to $24.60. The low was down at $22.71. Although the price is up some 35% or more this month and over 110% since its low for the year, it still remains well below its all-time high price of near $50 back in March 2011.
Meanwhile, in the other precious metal market, the price for gold did reach a new all time high price today. The price took out the 2011 high price of $1921.17. It is currently trading at $1938.26. That's good enough for a gain of $36.16 or 1.9%. The new all time high price reached today is at $1945.72. Today's low was just below the $1900 level. That $1900 level will now be eyed as close support.
Silver and gold has been a story for the last few months. Bitcoin quickly entered the storyline today after its search by over 12%. The current price is trading at 10,830, up $1202.87 or 12.49%. The high price extended to $10,944.23. The high price took the digital currency to the highest level since August 2019. The g-go digital currency days of the past have been fewer lately, but with a $1200 gain today it reignited those big-move days. If momentum continues , the 2019 high price was up at $13,868.44. A high price from August was at $12,320. Those prices may be targeted.
In the forex market today the dollar continued its moved to the downside trading at the lowest level in over 2 years. The greenback was the weakest of the major currencies. The EUR was the strongest.
A look at some of the major currency pairs shows:
- EURUSD: The EURUSD moved to the highest level since September 2018. At the high price for the day at 1.17809, the pair did find resistance against a topside channel trendline on the hourly chart. A lower channel trendline currently comes in at 1.1720 and moving higher. A break below that trend line could see further downside price action for the pair. Stay above, however, and the bull trend remains in place.
- USDJPY: The USDJPY continued its trend to the downside started on last Thursday. The price today fell and for the most part, stayed below the swing lows from May and June at 105.978 and 106.07 (the high price reached 106.08). The low price moved down to a intraday low of 105.11. The price has rebounded off of that low and in the process has extended above its 200 bar moving average on the 5 minutes chart at 105.38. Since cracking below that moving average on Thursday, the price has stayed below that moving average on a closing basis. If the price can stay above and the new trading day, there could be further upside potential.
- GBPUSD: The GBPUSD trade to its highest level since March 2020. Like the EURUSD, the price high stalled against day topside channel trendline near 1.2901. That trendline and the natural resistance at the 1.2900 level helped to stall the rally. The current price is trading at 1.2876. A lower channel trendline currently comes in at 1.2860 and moving higher. Stay above would keep the bulls/buyers in control. Move below and we could see some further probing to the downside.
Fundamental news today included June preliminary durable goods orders which increased by 7.3% vs. 7.0% expected. Dallas Fed manufacturing index for May came in at -3.0 but was greater than the -4.9 expected.
Toward the end the day the Republicans announced their plans for the 4th coronavirus stimulus package. Including money for schools ($100 billion), a $1200 stimulus check, a $200 emergency unemployment benefits (down from $600), more funding for PPE.
The FOMC will announce her next interest rate decision on Wednesday. Chairman Powell speak after the decision.
Also this week are a plethora of earnings including AMD, McDonald's, Pfizer, Starbucks, Boeing, Shopify, Facebook, PayPal, Amazon, Apple,Alphabet, MasterCard, AstraZeneca, Exxon Mobil and Caterpillar. That's a a lot of companies with varying stories over the current quarter. Make a misstep like Intel last week, and the stock can be punished. For the high flyers like Amazon, Apple, Shopify in what is a down year for the S&P and Dow, the market may not be too kind if there is a miss.