FX update – USD 4th day higher

Stuart Cowell HFM

FX News Today

USD continues to bounce, JPY, AUD & NZD weaken, Yields up as virus worries escalate and China pushes back on US sanctions and reacts to US normalizing relations with Taiwan. Plus, Speaker Pelosi’s plans to impeach President Trump if the cabinet doesn’t act to remove him. Equities closed at new ATHs on Friday, despite big miss for NFP. Asian markets mixed (Japan closed today) Gold, Bitcoin and Oil all down sharply. Overnight – Chinese inflation better than expected and Aussie Retail Sales in line at a perky 7%.

This week – US Retail Sales and Inflation (CPI & PPI), UK GDP, lots of Central bankers speaking topped by Powell on Thursday.

USDIndex – 4^th day higher from 33-mth low (89.15) and back over 90.00 – trades at 90.31 – PP 89.90 – Touching a 19-day high earlier.

EUR – 3^rd day lower trades under 1.2200 – 1.2165 earlier, for a 17-day low, back to 1.2185 now– PP – 1.2235.

JPY – 4^th day higher – breached n holds 104.00 – Trades at 104.12 (R1) , close to one-month highs – PP 103.87

GBP – down under 1.3500 this morning – testing S2 at 1.3480 PP 1.3580

AUD – Back down to trade at 0.7700 (s2) – PP 0.7760

NZD – slips under 0.7200 this morning – PP 0.7240, trades at 0.7185

CAD – breaches and holds over 1.2700 (PP) – moving higher on weaker Oil prices – trades at 1.2765 (R2)

CHF – Trades at R1 around 0.8885 – up from 3 yr lows on Wednesday at 0.8757. PP 0.8850

BTC – Parabolic bazooka boom continued Friday to new ATHs over $41,800 – rapidly retraced to day – “Back” under $35,000.

GOLD – Big faller (1920-1830) on Friday, Trades at 1850 now, PP 1875

USOil – $52.70 high Friday – trades at $51.50 (PP) now – still elevated

USA500 – Closed up 20 (+0.55%) 3824 – USA500 FUTS now at 3803. 46 days north of 20SMA (3722).

Today – EZ Sentix Index, BoE’s Tenreyro, ECB’s Lagarde, Fed’s Bostic, Kaplan.

Biggest (FX) Mover @ (07:30 GMT) AUDUSD (-0.65%) Continued Friday’s decline on open, moved down from PP, now under 200Hr MA to pivot at 0.7700. S2 0.7690. Slow & Fast MAs aligned and trending lower, RSI 35 and falling, MACD histogram & signal line aligned lower, significant break of 0 line this morning, Stochastics rising from OS zone. H1 ATR 0.0018, Daily ATR 0.0082.

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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