Technical Analysis

The USD is the strongest and the GBP is the weakest as NA traders enter for the day

Traders will sift through US retail sales, PPI and other economic data ahead of the FOMC decision tomorrow

A big data day in the US and the USD is going into it as the strongest of the majors, while the GBP is the weakest.  The US will release retail sales, PPI and the empire manufacturing data at the bottom of the hour. Later at 9:15 AM ET, the industrial production and capacity utilization will be released.  At 10 AM, the dated armbands with business inventories, and NAHB housing market index being released. The FOMC will start there two day meeting that will culminate with their interest rate decision (no change in rates) tomorrow at 2 PM ET. The markets will be focusing on expectations for QE taper (or not).  

Looking at the ranges and changes, the GBP after their jobs report today, moved lower and is cracking to new session lows vs the major currencies.   The GBPUSD has cracked to the lowest level since May 14, but it wasn’t after running up to test the 100 hour MA, finding sellers and pushing lower. In contrast is the USDJPY which is stuck in the mud with a 18 pip trading range.   The USDCAD is seeing buying interest after it sniffed it’s 100 hour MA at the lows, before moving higher.   JPY crosses are mostly lower with the GBPJPY racing to the downside.  

The ranges and changes for the major currency pairs

In other markets:

  • Spot gold is down $-0.81 or -0.4% at $1865.40
  • Spot silver is down $0.18 or -0.68% at $27.66
  • WTI crude oil is up $1.01 .42% $71.88
  • Bitcoin is trading up $251 or 0.63% of $40,093. The high price reached $40,850. The low price was at $39,563.04

In the premarket for US stocks, the major indices are little changed. The US and EU result there Airbus verse Boeing tariff tiff.  

  •  Dow is up a scant 0.25 points after yesterday’s decline of 85.85 points
  • S&P is up four point after its record close yesterday where the price increase by 7.71 points
  • NASDAQ index 15 points after its record close yesterday. The index rose 104.72 points yesterday

In the European equity markets, the major indices are mostly mixed with Spain and Italy trading down, the other countries are higher

  • German DAX, 0.57%
  • France’s CAC, +0.49%
  • UK’s FTSE 100, +0.58%
  • Spain’s Ibex, -0.5%
  • Italy’s FTSE MIB, negative zero point 1%

In the US debt market, the yields are mixed/little changed. The US 10 year yield remains below the 1.5% level:

US yields are mixed
In the European debt market, the benchmark 10 year yields are mixed but little changed.

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