Forex news for NY trading on September 21, 2017.
- Mnuchin: No bank in any country should be used to facilitate N. Korea’s destructive behavior
- US WTI crude oil futures settle at $50.55, down from 0.14$
- Fade the Fed; a good level to sell USD/CAD — TD
- Forex technical analysis: EURUSD has booths in MY area (but barely)
- Asset: New executive order targeting individuals, businesses, trade w/ N. Korea
- Bitcoin technical analysis: Break yesterday…in the impasse.
- US 2Q household change in net worth 1698B vs 2327B last quarter
- FOMC not a game changer for USD — Credit Agricole
- European stocks close with gains. The yields a bit.
- Seven of the Euro area flash consumer confidence -1.2 vs -1.5 expected
- Mario Draghi: Financial system now poses less risk to the real economy
- The FHA July house price index +0.2% vs. +0.4% expected
- Philly Fed September business outlook of +23.8 vs. +17.1 expected
- US initial jobless claims 259K vs. 302 K estimated
- Canada July wholesale sales +1.5% versus -0.7% expected
- The EUR is the strongest while the AUD is the weakest, as the NA trader start the day
In other markets today, the near-end of the day shows:
- Spot gold down $9.75$1291.45. The 50 day MA blocked the fall today to around $1288.30 (see post).
- WTI crude oil is trading at $50.71 increase of$ 0.02. The contract has been higher lows and the highest during the last 4 trading days. The contract is also moving away from its 200-day (see post).
- U.s. equities had no trace today. It is a shock. The three indices have tumbled in trading today.
- US yields end unchanged to a bit higher. 2 year 1.4385%, unchanged. 5 years 1.8862%, up 1.2 bp. 10 years 2.2765 per cent, up 0.9 bp. 30 years 2.8034%, unchanged.
Do you remember the 21st of September?
This will be the 21st of September, 2017th remember?
— The day after the FOMC’s decision to begin the reduction of the balance sheets.
The Fed announced that it would begin the reduction of balance sheets, past and also expected to be a rate increase again in 2017 and 3 in 2018. That news yesterday sent the dollar higher. Today, the dollar moved higher primarily against the AUD, NZD and JPY, but has been weaker vs the EUR and the GBP. Both of these currencies move higher against the greenback. The GBP has been without doubt the catalyst. UK PM May, in an effort to obtain brexit negotiations to be kick started and at the head of his speech tomorrow in Florence, said that the UK is ready to pay 20 billion euros during the transition period, but only if it has access to the single market and of a form of a customs union. That was a kick in the GBPUSD and the EURUSD has wandered along with it.
— Other u.s. sanctions against N. Korea
President of the Trumpet and the Secretary of the Treasury, Mnuchin has unveiled new sanctions against N. Korea and their leader — Rocket Man. The sanctions also have the support of China, according to Mnuchin. The speech at the UN to Trump where the «Rocket Man», the phrase was front and center and, now, the surge in financial strains, has probably had Kim cooking to the steam. Gold to find a bid before the weekend. It fell below $1300 today and tested the 50-day at $1288 today. The markets have the courage of 1000 matadors (or so it seems).
— Fortune the united states has increased to another record. No stopping the wealth effect of rising stocks and real estate. Of course, when people feel rich they also increase the debt and we have seen a little too much with the 2Q data. The data does not have a large impact as we are near the finish of the T3, but for the money counters, the gains were not as large as the T1, but they were still not bad. I wonder how much of this gain went into the pockets of the 1% ers?
— After the two natural disasters have been felt by the world.
The earthquake outside of Mexico has seen the number of deaths will rise to 273. The hope of finding a child still alive at the school which claimed 19 young children, seems to be a story of false hope. During this time, the video from Puerto Rico showed of mass destruction and the devastation of hurricane Maria, which landed on the island with 155 MPH winds. The hope is that it moves towards the sea and takes his destruction. Power outage in the whole island.
— US initial jobless claims were better than expected, but Irma and Harvey impacted the data. The index of the Philadelphia Fed has been better than the expectations.
— The pound sterling is the strongest currency on the day. The AUD was the weakest. Below is a look at the % of change.
A look at some of the major currency pairs:
The EURUSD has moved higher in trading today, but he ran into overhead resistance from the 100 hour MA at 1.1954 area. This is what I will remember most on the trade in today. In the future, if the price is to go lower and continue with the decline seen after the FOMC yesterday, that MY line was the last line of defense of the bears. He held. It will fit into the new trading day? That is what traders will be watching in the day See the post here.
The pair GBPUSD.
The thing about the GBPUSD pair that makes it memorable today is that the top remedial level after brexit in 2016 have been broken, earlier this week, and keeping a support on the post FOMC dip. These levels between 1.3443 and 1.3532 and the low dropped to 1.3451. In addition, not only the GBPUSDs price crossed above the 1.3532 level of the daily chart, but also moved above some key technical resistance zone at the 1.3529 too (see the post here). Good support to the outfit. The market has rebounded. Buyers are in control of the risk at the 1.3529-32.
USDJPY trading today will be remembered for finding support on the daily 200 MA at 112.12. The price of the NY session moved down to the level, only to find the buyers exactly where they need to show. Of course, the risk can be defined and limited to 200-day MA so they were not risking a lot. However, the rebound has certainly been memorable. The price of trades as 112.46 in the new trading day, and unless the price drops below 200 days, the increase is the way to go now. See the post here.
Do you remember the 21st of September? I hope that you remember some and it helps you become a better trader.
Peace and prayers for the people affected by the recent natural disasters.