FX news and market update: Biggest day of the week

Stuart Cowell HFM

FX News Today

USD mixed but biased higher, Yields move lower, Equities edge higher. Biden stimulus announcement later, Trump impeached. Asian markets move higher, US CPI & Oil yesterday inline with expectations, Lagarde talked of extending PEPP as required and hopes for a digital EUR with 5 years. Overnight – More good news from JPY and the the largest ever Chinese monthly trade surplus (78.2Bln and a +18.1% increase in Exports). AUD & NZD benefit the most. Gold & Oil lower, Bitcoin bounced again.

China reports first COVID death in six months.

USDIndex – Holds over 90.00. Trades at 90.36, – PP 90.20 – R1 90.50, S1 90.00.

EUR – Back under 1.2200 (R1) – Trades at 1.2145 now– PP – 1.2170 (200HrMA). S1 1.2125.

JPY – Back to just break over 104.000 – Trades at 104.05 (R1) – PP 103.78, S1 103.60.

GBP – Continued rally to 1.3700 yesterday. back to 1.3650 (PP) – R1 1.3680, S1 1.3600.

AUD – Over 0.7700 – trades at 0.7750 (PP) now. R1 0.7772, S1 0.7710 .

NZD – Holds at 0.7200 (PP and 200MA) – s1 0.7152, r1 0.7226.

CAD – Back under 1.2700 (S1) trades at 1.2680 (S2) – PP 1.2772 .

CHF – Trades at 0.8875 (PP) – S1 & 200MA 0.8850, R1 0.8890.

BTC – Bounces back to R3 at $38,300. – PP today 34,000.

GOLD – back under 1850 (S1) and Trades at 1837 (S3) – S2 1842.

USOil – Down from yesterdays 11-mth high at $53.90 after official inventories were in line with expectations. Trades at $53.00 now – PP 53.10, s1 52.55, r1 53.85.

USA500 – Closed up 8.86 (+0.23%) 3809 – USA500 FUTS now at 3818 – 49 days north of 20SMA (3743).

Today – ECB minutes, US weekly jobs data, OPEC MOMR, President-elect Biden is to unveil his stimulus package, Fed’s Powell, Rosengren, Bostic, Kaplan.

Biggest (FX) Mover @ (07:30 GMT) AUDJPY (+0.41%) Daily chart breached 20SMA Nov. 3 at 74.80 – Bounced from 80.25 on open, data and stimulus expectation helping tested 80.75 earlier. Fast MAs aligned and trending higher, RSI 61 and rising, MACD histogram & signal line aligned higher and north of 0 line from earlier, Stochastics OB since MACD broke 0 line. H1 ATR 0.1025, Daily ATR 0.6000.

Author

Stuart Cowell

HFM

With over 25 years experience working for a host of globally recognized organisations in the City of London, Stuart Cowell is a passionate advocate of keeping things simple, doing what is probable and understanding how the news, c

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