Forex news for North American traders on Dec 11, 2017.
- Major US stock indices close higher. S&P and Dow trade at record levels
- Canada fin min comments crossing - agreement on tax with provinces
- Bitcoin technical analysis: Cracks back above the $17,000 level
- The deficit will matter again next year: Trump eyeing cuts to social programs
- Forex technical analysis: GBPJPY stalls at the 100/200 hour MA
- Here's the real (or at least official) story on the $3.5 billion in Bitcoin confiscated in Bulgaria
- The Mexican Central Bank expected to join Fed and hike this week
- It's all about what the Fed does after hiking rates
- US sells 9 year 11 month notes at high yield rate at 2.384%. Dollar moves higher.
- Forex technical analysis: NZDUSD up today but remains in the range
- China planning contingencies for US policy changes, including higher interest rates - report
- US sold $24B of 3 year notes at 1.932%
- European stocks mostly lower. Yields mixed but little changed
- EUR/USD: What would fuel the next stage Of EUR Rally? Where to target - SocGen
- UK PM May speaks in front of Parliament. GBPUSD trades near lows for the day
- CBOE Bitcoin futures off and away but volume is limited
- JOLTs job openings for October 5.996K vs. 6100K estimate
- Forex technical analysis: EURUSD dips to European low and bounces
- UK opposition to consider moving parts of BOE outside of London
- May says there should be no doubt as to UK's sincerity in Brexit talks
- The strongest and weakest currencies as NA traders enter for the week
- A "few injuries" reported at NYs Port Authority - WABC News
- NYFD/PD reports explosion of unknown origin in midtown
In other markets:
- Spot gold fell $6.80 or -0.55% to $1241.70
- WTI crude oil futures rose 0.65 cents or 1.13% to $58.01
- US yields are ending the day higher after being lower for most of the session. Tepid demand for 10 year notes helped yields recover. Two-year 1.8189%, +2.4 basis points. Five-year 2.1566%, +1.6 basis points. 10 year 2.3868%, +1 basis point. 30 year 2.774%, +0.6 base points
- US major stock indices are closing higher. S&P index up 0.32%. The NASDAQ composite index of 0.51%. Dow industrial average up 0.23%
The day was quiet with little in the way of economic data.
The one piece of economic data came from the JOLTs job openings for October. The expectations was for 6100K openings. The actual number came in a bit weaker at 5996K. Despite the less than expected number, the dollar did not suffer for long as the data remains near high levels indicative of a robust job market.
Also helping to support the dollar in the NY session at least, was a rebound in the US yields. The US treasury issued $24B 9 year/11 month notes at a yield of 2.384%. The rate was not far off pre-auction WI levels, but the bid to cover ratio, was light even at the higher yield. That helped to reverse declines in the treasury yields seen in the NY morning, and also gave the dollar more of a boost.
Despite the move higher in the dollar in the NY afternoon, the greenback was still overall a little lower. Nearly all of the decline can be attributed to declines against the NZD which occurred in the Asian Pacific session. Those declines against the kiwi remained, but looking at the other pairs, what was declines in greenback vs. the EUR, JPY, CHF, CAD, became small gains or losses for the day. Although the dollar was still lower against the AUD, it too recovered some of it's declines by the close.
The other market news for the day, was the continuation of the bitcoin rally. Today was the start of the CBOE futures contract on bitcoin and although the volume was light, the price did not go lower as many expected. That helped to support the "spot" price to back above the $17,000 level. The digital currency is trading at around $17,200 near the close. Does the cryptocurrency reach $20K this week? You kind of expect it.
Some technical thoughts in some of the major currency pairs:
- The EURUSD was able to crack above the 100 day MA in earlier NY trading but stalled near the 61.8% of the move down from the December 1 high. That came in at 1.18098. The high price reached 1.18109. The fall took the price back below the 100 day MA at 1.1799. The price also fell below 1.17748 level by the close. That was a low on Dec 7th last week and also a floor earlier today (see red circles in the chart below). That level is now a close risk level for shorts. Stay below is more bearish.
- The USDJPY fell to retest the 61.8% retracement area at 113.24 and bounced. The move higher returned the pair back to near unchanged levels on the day, and also solidified the level as a risk level for longs in the new day.
- The GBPUSD fell below 100 bar MA on the 4-hour chart, the 38.2% and a trend line (they are at 1.3354-638. Staying below is more bearish in the new trading day.