Bill Baruch, president and founder of Blue Line Futures, reviews and previews the euro, Japanese yen, Chinese yuan, Aussie and Canadian and the upcoming economic calendar. Follow his reports Monday-Friday on MoneyShow.com and short Midday Markets video
Bill Baruch’s Midday Market Minute short video for Nov. 28 here.
Stocks rip on statements from Fed Chair Powell today.
Euro (December)
Yesterday’s close: Settled at 1.1312, down 35 ticks.
Fundamentals: Tuesday centered around Fed speak and we certainly got more of the same; a steady Fed that is willing to continue gradual raises as long as the data confirms such. Fed Vice Chair Richard Clarida was the loudest voice in the room today and in his data-dependent narrative pointed to interest rates being “much closer” to neutral than when the Fed began hiking in 2015.
The British pound GPB/USD lost more than 0.5% Tuesday as U.K. Prime Minister Theresa May’s task at home is building a wall of worry. Overall, broad sentiment including a safe-haven push for the U.S. dollar in the lead up to the Summit at the Summit has pressured the EUR/USD for the third session in a row. The economic data today from the U.S. was nothing to write home about, both Case-Shiller Home Price Indices and Conference Board Consumer Confidence were just below expectations. Wednesday, at 2:00 am EDT we get Consumer Climate from Germany. The second look at U.S Q3 GDP along with Goods Trade Balance is due at 8:30 am EDT and New Home Sales are at 10:00. All eyes will be on Fed Chair Powell at noon EDT, but it’s a tall order to expect him to be much less hawkish than what we’ve seen in the lead up to the December 19 FOMC Meeting.
Technicals: This was another dismal session for the euro as the trend lower continues. Price action tried to buoy at major three-star support at ...
Yen (December)
Session close: Settled at .88005, down 11.5 ticks.
Fundamentals: The yen USD/JPY continued its trend lower and finished on the lows of the session as investors’ risk appetite for equities expanded for the second session in a row. The dollar has remained elevated and the combination of the two has pressured the yen severely. We included a bit of a Bearish Bias here yesterday as the path of least resistance is clearly lower and pointing to major three-star support. There is no data out of Japan tonight.
Technicals: The yen is doing exactly what we discussed here yesterday, trading lower and testing deep into major three-star support at ...
Aussie (December)
Session close: Settled at .7226, down 5 ticks.
Fundamentals: A steady to higher overnight gave way to U.S. dollar strength at the onset of U.S. hours. Traders had built up hope for a less hawkish Fed Tuesday and the speakers did not live up to such hope. Furthermore, market participants seemed to hold this hope in a manner that offset President Trump’s comments on trade with China late Monday. His comments would have otherwise weighed on the Aussie USD/AUD since yesterday’s close. Construction Work Done data is due at 7:30 pm EDT.
Technicals: Price action ran higher overnight but stalled well short of our benchmark resistance level to secure a breakout at ...
Canadian (December)
Session close: Settled at .7522, down 33.5 ticks
Fundamentals: A stronger U.S. dollar, poor commodity performance, uncertainty on trade and growth have all weighed on the Canadian USD/CAD and as a group these are leading the currency lower. Do not expect Wednesday to bring a lot of answers for the Canadian but traders must keep an ear to the ground for EIA Crude data at 10:30 am EDT and Fed Chair Powell at noon.
Technicals: Price action started the session on its back foot but on the bright side held ground well as it approaches major three-star support at ...
View a short video: Bill Baruch: Trading Futures. Gold, USD, yuan.
Recorded: TradersExpo Chicago July 24, 2018.
Duration: 4:34.
