Session Wraps - Major Forex Headlines wrapped up by trading session

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Author: Adam Button
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Forex news for New York trade on January 20, 2017:

Markets:

  • Gold up $3 to $1208
  • WTI crude up $1.05 to $52.42
  • US 10-year yields flat at 2.47%
  • S&P 500 up 7.6 points to 2271
  • Swiss franc leads, New Zealand dollar lags

There's a new man in the White House. Donald Trump took the oath of office and delivered a campaign-style speech where he attacked the Washington establishment. The US dollar wobbled lower but quickly recovered. He didn't single out any person or country and that was one of the tail risks coming in.

USD/JPY chopped around 115.00 for most of the day with some large options running off at the figure but late in the day, protests in Washington and sliding Treasury yields pulled down the pair. Stops below 114.50 led to a quick move down to 114.20.

At the same time, the US dollar came under broad pressure, leading to session highs in EUR/USD and cable. The pound was the top performer on the week and reversed earlier losses today to finish modestly higher.

USD/CAD rose early in the day on soft Canadian economic data. The pair hit a two week high of 1.3388 but the gains were capped by a rally in oil prices. Crude was up 2% and hardly dented by a massive increase in drilling rigs in the Baker Hughes report. The pair finishes the week near 1.3326.

The Australian dollar finished strong after a dip in Asia. AUD/USD chopped in the 0.7535 range for most of US trading until a late bid pushed it to 0.7564. That was 20 pips from the Asian high and prevented a loss on the day.

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Author: Mike Paterson
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Forex news and trading headlines 20 Jan 2016

Davos:

Other news:

Data:

Davos has dominated ahead of Trump's highly hyped inauguration ceremony with plenty of rhetoric but none that's been directly a price-changer.

After a quiet start we've seen some USD buying again  with USDJPY once again leading the way up to 115.37 after an early look at 114.50 support/demand again.

GBPUSD has been down to 1.2261 from 1.2365 and EURGBP up to 0.8673 from 0.8630 helped along the way but some weak UK retail sales data. EURUSD failed into 1.0700 again and has retreated to 1.0628.

USDCAD has grabbed hold of the US$ rally with both hands to post 1.3379 despite oil prices firming. Canadian CPI data out today at 13.30 GMT. 

AUDUSD continued its retreat that began in Asia after failing into 0.7600 and has now posted 0.7518 with gold down from $1209 to $1199.

Equities have had a mixed time of it and that sums up the session as we wait and see if Trump throws any surprises into the mix later.


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Author: Eamonn Sheridan

Forex news for Asia trading Thursday 19 January 2017

China data today:

For the week, the PBOC injected 1130bn yuan via OMOs into money markets. That's a record injection for a week.

And:

What do you get if you mix together easy monetary policy, fiscal support and a property boom? A cracking good GDP result, that's what. China Q4 GDP came in today at 6.8%, to give a full year 2016 GDP of 6.7% growth, pretty much bang in the middle of the 6.5 to 7% official target.

Yes, at 6.7% for the year that's the slowest since 1990, but as China's economy grows larger and larger and larger you will not see continued higher GDP growth rates. Simple fact.

While GDP beat, December data was not so great. Industrial production and fixed asset investment for December came in at a miss; on the other hand December retail sales were a solid beat. The churlish will call it a bad day for China data, the sanguine a good day. But, as is often the case, its somewhere between those two extremes.

What does seem likely though, is that 2017 will not see quite so supportive policies from China; that's not say authorities there will take their eye of the ball, they won't, but they will use the stabilisation in the economy to lean more towards reform and reducing the risks from the build up in debt, this is an ongoing cycle in China. While I'm on the big picture, the party congress scheduled for Q4 2017 will keep the pressure on authorities to not let growth slip too far.

We also had Federal Reserve Chair Yellen speaking a little before the China data, and in the middle of her Q&A over the data release. While Yellen was speaking we saw the USD weaken, no too dramatically but some decent moves nonetheless. Yellen did not say anything too much different from her speech earlier this week, so it's questionable that he words were the cause of the move but they could well have played a role.

EUR/USD has gained around 30 or so points from its earlier lows, AUD moved up a similar points amount.

USD/JPY traded higher earlier in the session, above 115.10 before giving way down under 114.60 eventually. Cable has been a winner on the session, up 40 or so points.

Apart from the Chinese data and Yellen's speech/Q&A news and data flow was light.

Regional equities:

  • Nikkei -0.10%  
  • Shanghai +0.54%
  • HK -0.62%
  • ASX -0.58%
Have a great weekend all.

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Author: Adam Button
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Forex news for New York trading on January 20, 2017:

Draghi:

Data:

Markets:

  • Gold down $2 to $1205
  • WTI crude up 30-cents to $51.38
  • S&P 500 down 9 points to 2263
  • US 10-year yields up 3.5bps to 2.46%
  • NZD leads, CAD lags

There were a few chapters in a back-and-forth trading day that wraps up with the US dollar in the middle of the pack. It was near the top until the final few hours of trading when it began to slide.

The early focus was on the euro and Draghi squared off with the German faction that's beginning to fret about inflation. He repeatedly said inflation a temporary energy bump and that underlying factors are still subdued. That helped to pull the euro down to 1.0589 from 1.0660.

However in the latter half of the day the euro clawed all the way back. There was no headline driving USD sales but there is a sense that longs might want to square up ahead of Trump's inauguration on Friday night.

Stephen Mnuchin put on a solid performance and didn't sound overly partisan or determined to pick fights in Washington. He said it was important that the US dollar was strong in the long term and that he wouldn't comment on short-term moves. On China, he said he would name it a currency manipulator if they 'do it again'.

USD/JPY was also driven by bonds as they sold off early but recovered later, in part due to a strong TIPS auction. The pair rallied as high as 115.62 before slipping to 114.84 late.

Cable finished near the highs of the day, up 70 pips to 1.2332. There is some minor resistance up to 1.2350 but overall it was a strong day for the pound.

USD/CAD continued higher after the BOC fall on Wednesday and is slated to close just above 1.33 after touching 1.3353. The gains come despite a small rise in oil prices.

The Australian dollar was unfazed by the jobs report and shook off a few efforts to push it lower. The worst level of US trading was shortly after London left at 0.7529 but it grinded up to 0.7562 later.

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