Session Wraps - Major Forex Headlines wrapped up by trading session

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Author: Adam Button
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Forex news for US trading on April 21, 2017:

Markets:

  • Gold up $3 to $1284
  • WTI crude down $1.11 to $49.61
  • US 10-year yields up 1.4 bps to 2.25%
  • S&P 500 down 7 points to 2349
  • NDZ leads, CAD lags

There was plenty of news and reasons to trade today but the FX market was on the sleepy side. Almost everything finished up within 20 pips of opening levels.

The one exception was USD/CAD, which finished up 28 pips to 1.3497. That's surprisingly small given that Canadian CPI was a big whiff to the downside. It was trading at 1.3460 before the data and struggled to break 1.3500 afterwards. It eventually did and hit stops up to 1.3525 but that was the high of the day.

Most of the news didn't do much for USD/JPY. The bond market was in a tight range but stocks bounced around in a decent range. The big news late in the day is that Trump, if you can believe him this time, will actually release his tax plan on Wednesday or shortly thereafter. He also said he believes it's going to be the largest personal and corporate tax cut ever.

Now that sounds like pretty good news but it was only good for 5 points in the S&P 500 and 25 pips in USD/JPY. So take your pick of a market that's skeptical or asleep.

There's also the French election on Sunday and that sent plenty of people to the sidelines. Oh who am I kidding, the market is filled with degenerate gambles and volume on the US-listed France ETF has been huge.

In any case, the euro was stuck in a tight range around 1.07 for all of US trading. It's grabbed a strange, very late bid up to 1.0722. I guess that's people who waited until the last minute to get out. Or it's margin calls because many brokers are hiking margins into the weekend.

Cable didn't do much on the day, finishing entirely unchanged at 1.2813 but the weekly close is the highest since September.

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Author: Mike Paterson
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Forex trading news and economic data headlines 21 April 2017

News:

Data:

Another nervous session that's seen prices mostly stick to recent ranges with weaker UK retails knocking the pound and pre-French election nerves unsettling the euro.

The session began with some PMI data-led euro demand which nudged EURUSD up to 1.0730 and EURGBP to 0.8390 following weak UK retail sales data. EURJPY also looked underpinned as USDJPY found support albeit in tight ranges again.

That EURGBP move helped push cable lower, which customarily had made a move ahead of the data from 1.2820 to 1.2805 and the subsequent shove lower was therefore limited to 1.2790 but we've been down to test the range bottom at 1.2770 since with EURUSD falling through 1,0700 and triggering stops to 1.0688 before finding fresh demand. Sizeable option expiry interest in play too.

 AUDUSD has remained close to its own option interest at 0.7525 while USDJPY also has clumps of contracts rolling off either side of 109.00 and hence limiting its range along with the cross-pair interest playing out both ways.

Canadian CPI to come at 12.30 GMT and we've seen USDCAD capped at 1.3480 again and testing 1.3450 support. NZDUSD has option interest at 0.7025 to keep it contained too.

Equities started in mixed mode but by and large have made a few gains.

So it's a busy week-end ahead and potentially price impacting come Sunday night/Monday morning and we can expect to see some more position adjustment before the day is out.

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Author: Eamonn Sheridan

Forex news for Asia trading Friday 21 April 2017

USD/JPY ticked back toward overnight highs in early Tokyo but soon lost some ground, from highs just above 109.40 down to circa 109.20 as I update. Data from Japan today was the flash manufacturing PMI, which gained again on the month (subject to 'final' confirmation, of course).

AUD/USD dipped a few more points in the morning before ticking to new session highs after China got active. Gains for commodity prices reflected on Chinese exchanges did it no harm. Lows ahead of 0.7515 and a high just above 0.7530 though, so not too much in it today. NZD/USD lost more ground early, from around 0.7008 to just under 0.6985. As I update its edge back close to 0.7000. ANZ Consumer Confidence data for April didn't have much impact when it was released.  

Elsewhere, ahead of the French election this weekend EUR/USD is little changed here in Asia. Cable, too, little change. Ditto for USD/CHF (added - as I post its on its session high). All three had very small ranges. Oil and gold are little changed on the session here also.

Regional equities:

  • Nikkei +0.73%  
  • Shanghai -0.07%
  • HK +0.14%
  • ASX +0.67%

Still to come:

A heads up for Monday morning and the French election (first round) "early indications":

  • Voting finishes at 7 pm Sunday in Paris, exit polls are released at 8 pm (that's 1900 and 2000GMT)

Note this carefully (you probably already know, but if not):

  • Exit polls aren't results. They're usually done by TV networks by standing outside voting stations and asking people how they voted. In the US election and Brexit, the exit polls were wrong.

Adam posted much more on the times (and more) to watch, here:

But remember ... 20000GMT Sunday for the first indications

I'll be in for these exit poll results as they come out. I haven't spoken to Adam on this, but I imagine wild horses would not be able to keep him away.

--

More:

  • Caixin report the China Banking Regulatory Commission (CBRC) is checking risks of cross-guaranteed loans,with a focus on the steel, coal and aluminum industries.
  • A piece in the Wall Street Journal (may be gated), there are signs that the sugar rush of Donald Trump's victory and global-growth hopes has faded, raising doubts among some investors about whether stocks can stay high: Markets Send a Worrying Message About the Economy

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Author: Adam Button
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Forex news for US trading on April 20, 2017

Markets:

  • Gold up $1 to $1281
  • WTI crude down 17-cents to $50.27
  • S&P 500 up 18 points to 2356
  • US 10-year yields up 2 bps to 2.23%
  • AUD leads, JPY lags

It was a roundtrip for the euro. Polls showing some momentum for Macron helped EUR/USD up to 1.0777 in early European trade but it later made a double-top there and the US dollar caught a bid on more talk of tax cuts from the White House. The top led to selling all the way down to 1.0717, which was nearly flat on the day.

USD/JPY caught a big bid right at 9 am in New York as it jumped to 109.40 from 109.00. It was either a run on stops with a few big levels in between or it was an early leak of the Kuroda comments. The move faded in 30 minutes but fresh highs came when the Kuroda comments hit. The pair made two more highs after that over the next four hours but only by a couple pips each time and is now consolidating around 109.30.

Cable inched over the early European high of 1.2842 but could push further and slipped back to 1.2817. But it's impressively holding nearly all the gains from the bust higher on the election call and that looks like a consolidation before another push.

USD/CAD touched 1.3500 but was quickly beaten back from the big figure down to 1.3460. The rumours about Canadian housing were proven true as Ontario introduced measures to cool the Toronto market. Flat oil trading generally kept a lid on the trade.

AUD/USD hit a fresh high of 0.7547 just ahead of the London close but was dragged back to 0.7525 on the dollar bid on the tax comments.

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More session wraps for your convenience.

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