FX News Today
-
Yields plunged, sending the bond below the 2% for the first time ever, and a new all-time low at 1.914%. The 10-year dropped to 1.47% and the 2-year tested 1.46%, before rates edged up slightly. This meant investors were willing to lend the government money for three decades for less than the overnight rate.
-
USDJPY pivots at 106.15, EUR is down to the 111.00 handle after more talk from ECB members of QE and rate cuts at the September meeting. Cable rallied to 1.2150 after good UK retail sales figures, yesterday but has slipped back to 1.2100.
-
Bank of Mexico cut rates 25 bps to 8.00%. Policy expectations were mixed, hence weakening the peso slightly. This is the first easing in five years.
-
Better than expected retail sales and productivity data, and a solid earnings beat from Walmart boosted equities. Wall Street pared its gains and fell into the red as the 10-year yield fell below the 1.50% mark, but it bounced and stocks recovered slightly, though an anxious tone prevailed.
-
Market sentiment remains fragile as data continue to signal downside risks to growth. USOil is trading at $55.20 per barrel recovering from overnight lows under $54.00, Gold holds a bid at the $1520.00 handle.
Charts of the Day – The Wall of Worry
Technician’s Corner
-
EURUSD: Fell from highs yesterday ay 1.1158 o the 1.1100 handle following comments from ECB’s Rehn’s calling for “impactful and significant” stimulus in a WSJ interview. Today the pivot point sits at 1.1118 with S1 at 1.1080 and R1 at 1.1148. The 20 moving average has dipped to 1.1112 and the 5 period sits at 1.1105.
Main Macro Events Today
-
Housing Data and Building Permits (USD, GMT 12:30) – Housing starts should rise to a 1.260 mln pace in July, after a dip to 1.253 mln in July. Permits are expected to improve to 1.270 mln in July, after falling to 1.232 mln in June. Overall, starts and permits should show a firm path into Q3, and the Q3 averages are expected of 1.263 mln for starts and 1.295 mln for permits.
-
Michigan Consumer Sentiment Index (USD, GMT 14:00) – The preliminary August Michigan sentiment reading is forecast at 97.5, up from the final July sentiment at 98.4.
Support and Resistance levels
Disclaimer: Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of purchase or sale of any financial instrument.
Recommended Content
Editors’ Picks
EUR/USD drops below 1.0800 after German Retail Sales data
EUR/USD has come under fresh selling pressure and trades below 1.0800 after the data from Germany showed that Retail Sales declined by 1.9% MoM in February. Resurgent US Dollar demand is adding to the downside in the pair. US data are next in focus.
GBP/USD stays weak near 1.2600 amid market caution
GBP/USD remains defensive near 1.2600 in European trading on Thursday. The hawkish tone from Fed Governor Christopher Waller keeps the US Dollar afloat amid a cautious trading environment ahead of key US data releases and the Good Friday trading lull.
Gold price bulls keenly await US PCE Price Index on Friday before placing fresh bets
Gold price (XAU/USD) continues with its struggle to make it through the $2,200 mark on Thursday and oscillates in a narrow trading band through the early part of the European session.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
The other terminal rate: How far will policy rates be cut?
Recent communication by the Federal Reserve and the ECB has made it clear that the first cut in official interest rates is coming. Both central banks are saying the same but the ECB communication is more opaque than that of the Fed.