U.S. dollar share of global currency reserves fell in fourth quarter 2018

© Reuters. An employee counts U.S. dollar bills at a money exchange office in central Cairo © Reuters. An employee counts U.S. dollar bills at a money exchange office in central Cairo

By Saqib Iqbal Ahmed

NEW YORK (Reuters) – The U.S. dollar’s share of currency reserves reported to the International Monetary Fund fell in the fourth quarter, down for the third straight quarter, while the euro’s share of reserves grew to the largest in four years, data released on Friday showed.

Reserves held in U.S. dollars fell to $ 6.62 trillion, or 61.69 percent of allocated reserves, in the fourth quarter, from $ 6.63 trillion, or 61.94 percent, in the third quarter.

Total allocated reserves increased to $ 10.73 trillion in the third quarter from $ 10.71 trillion in the previous quarter.

Global reserves are assets of central banks held in different currencies, primarily used to support their liabilities. Central banks sometimes use reserves to help support their respective currencies.

While the dollar share of foreign exchange reserves contracted, the euro, the yen and the Chinese yuan’s share all increased.

The U.S. dollar remains the world’s dominant reserve currency but central banks around the globe appeared to continue to diversify their reserves away from the greenback.

“In terms of official flows, central banks’ building up reserves, there has been a move toward diversification and that has primarily been led by greater usage of other currencies in international payments,” said Karl Schamotta, chief market strategist at Cambridge Global Payments in Toronto.

“The renminbi is moving up the rankings. If you look at SWIFT payments data you can see it is increasingly used as a payments currency. The euro, of course, continues to stabilize after the euro crisis,” he said.

The euro’s share of global allocated currency reserves rose to 20.69 percent in the fourth quarter of 2018 to the largest since the fourth quarter of 2014.

The share of allocated currency reserves held in yuan, also known as renminbi, rose to 1.89 percent, the highest since the IMF began reporting its share of central bank holdings in the fourth quarter of 2016.

The Chinese currency rose 0.1 percent on a spot basis against the dollar in third quarter even as Washington and Beijing continued to spar on trade-related issues.

The yen’s share of reserves rose to 5.20 percent in the fourth quarter to the largest since the second quarter of 2002.

Sterling’s share of global allocated FX reserves fell to 4.43 percent in the fourth quarter to the smallest since the second quarter of 2017, the data showed.

The British currency, which has been plagued by volatility in recent months amid uncertainty around the Brexit process, fell 2 percent during the fourth quarter of 2018.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Let’s block ads! (Why?)

Forex News

Forex – Weekly Outlook: April 1 – 5

© Reuters.  © Reuters.

Investing.com – This week investors will be looking ahead to Friday’s U.S. government employment report for March, with figures on wage growth likely to be closely watched after the Federal Reserve appeared to rule out the likelihood of any rate hikes this year.

Investors will also get an update on U.S. retail sales and manufacturing activity.

The economic reports take on added significance after the U.S. bond market flashed a recession warning when 10-year Treasury yields fell below three-month Treasury bill yields for the first time since 2007 earlier this month.

High level trade talks between the U.S. and China will also remain in focus as Chinese Vice Premier Liu He comes to Washington to meet with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin.

There are also Brexit headlines to monitor amid fears that no withdrawal deal will be reached before the April 12 deadline.

The British pound came under pressure on Friday, with falling to a low of 1.2979, before pulling back to 1.3033 in late trade.

The currency remained well above lows hit in December, in part because “markets have begun to price in a long delay and that’s risk and sterling positive,” said Greg Anderson, global head of foreign exchange strategy at BMO Capital Markets.

Sterling’s move underpinned the , which was last up 0.05% to 96.81, helping it recover from an earlier drop on the weaker-than-expected report of U.S. inflation data, which added to the conviction that the country’s economy is losing momentum.

U.S. consumer spending barely rose in January and income increased modestly in February. The report from the Commerce Department also showed price pressures muted in January, with a measure of overall inflation posting its smallest annual increase in nearly 2-1/2 years. Consumer spending accounts for more than two-thirds of American economic activity.

With growth slower and inflation benign, Friday’s data bolstered the Fed’s case for ending its three-year monetary tightening campaign.

“It was a soft number,” said Anderson. “It is a relief that there’s no reason for the Fed to have to raise rates.”

The euro on Friday was headed for its worst month since October, weighed down by fears about economic growth and cautious signals from the European Central Bank. Policymakers cut growth forecasts for the euro zone economy earlier this month and launched a new round of cheap loans to its banks.

was a tad lower at 1.1216, down 1.43% for the month.

, Investing.com has compiled a list of significant events likely to affect the markets.

Monday, April 1

China is to publish its Caixin manufacturing PMI.

The U.K. is to release data on activity in its manufacturing sector.

The euro zone is to publish preliminary inflation data.

The U.S. is to report on retail sales and the Institute of Supply Management is to publish its manufacturing index.

Bank of Canada Governor Stephen Poloz is to speak.

Tuesday, April 2

Australia is to publish data on building approvals.

The Reserve Bank of Australia is to announce its benchmark interest rate and publish a rate statement, which outlines economic conditions and the factors affecting the monetary policy decision.

The U.K. is to publish data on construction sector activity.

The U.S. is to report on durable goods orders.

Wednesday, April 3

Australia is to release data on retail sales and trade.

China is to publish its Caixin services PMI.

The U.K. is to release data on service sector activity.

The U.S. is to publish the ASD nonfarm payrolls report and the ISM non-manufacturing index.

Thursday, April 4

Germany is to release data on factory orders.

The European Central Bank is to publish the minutes of its latest monetary policy meeting.

Friday, April 5

Financial markets in China will be closed for a holiday.

In the euro zone, Germany is to report on industrial production.

Canada is to publish its monthly employment report.

The U.S. is to round up the week with the government nonfarm payrolls report for March.

— Reuters contributed to this report

Let’s block ads! (Why?)

Forex News

UK Times report May’s government faces ‘total collapse’ over Brexit

Sunday Times newspaper points out opposing factions within the Conservatives:

  • newspaper said at least six pro-European Union senior ministers will resign if UK PM May opts for a no-deal departure from the EU
  • But at the same time, rival ministers who support Brexit were threatening to quit if May decides to stay close to the EU with a customs union or if she sought a long delay to Brexit

The clock is ticking towards the can-kick date of April 12. After having thrown business under the bus now the government chucking itself under. 

Sunday Times newspaper points out opposing factions within the Conservatives:

ForexLive

Let’s block ads! (Why?)

Forexlive RSS Breaking news feed

Take Five: The shape of you – world market themes for the week ahead

© Reuters. Traders work on the floor of the NYSE in New York © Reuters. Traders work on the floor of the NYSE in New York

(Reuters) – Following are five big themes likely to dominate thinking of investors and traders in the coming week and the Reuters stories related to them.

1/ YIELD CURVEBALLS

Which is it – growth or gloom? With 10-year U.S. bond yields below 3-month T-bill rates for the first time in more than a decade, recession fears are swirling. After all, an inverted yield curve, when longer-dated yields drop below shorter maturities, have proved to be fairly reliable predictors of U.S. recessions in the past. As a result some investors are busy putting cash behind bets the Fed is gearing up for rate cuts.

But there are many who scoff – they point to a world economy chugging along at a decent clip, dovish central banks and company earnings that are still growing, albeit more slowly. So while Treasury yields are down 30 basis points this quarter, world stocks are up more than 10 percent. Recession skeptics may also note that U.S. equities are not far off record highs and credit spreads have retraced most of their December losses.

Also, while past recession discussions have focused on inversions of the 2-year/10-year U.S. curve, that hasn’t reacted so far. Fed policymakers too, such as voting member John Williams (NYSE:), say they are not worried about recession this year or the next. Others such as James Bullard seem to be endorsing the “this time is different” argument, hinting that the curve’s predictive power has weakened.

But policymakers around the world have already taken heed. The ECB has hinted at further rate cut delays and at tiering interest rates to help banks; other central banks, from New Zealand to Canada, are hinting at rate cuts ahead.

2/THE END OF THE ROAD?

No. No. No. No. Parliament’s cold response to Prime Minister Theresa May’s Brexit deal so far means the manner of Britain’s exit from the European Union – originally scheduled for March 29 – is unknown.

Brussels has let Britain delay its departure while May battled to find a way forward but there is little enthusiasm in parliament or the population even for the stripped-down version of May’s twice-defeated deal. But lawmakers have also given the thumbs-down to a series of other amendments, including revoking Brexit, delaying it further or holding another referendum.

Dismayed investors have been avoiding the pound but the resulting shortage in trading volumes just exacerbates price swings. The question now is whether the most hardline Conservative euroskeptics and Northern Ireland’s DUP, the party propping up May’s government, can ever be convinced to back an exit deal before the new April 12 deadline.

If the withdrawal agreement does somehow scrape through, sterling would likely surge above $ 1.35. For the time being though, the bleak, if unlikely, alternative scenario – a chaotic no-deal departure – persists.

Options markets aren’t optimistic. The price investors are willing to pay for one-month sterling protection – insurance against sterling falls – is at the highest since the 2016 referendum vote.

3/WORKIN’ FOR A LIVIN’

U.S. factory job growth was its weakest in February since the summer of 2017 but still managed to extend the streak of monthly gains to 19, the longest in nearly a quarter century. If, as expected, Friday’s March payrolls report makes it 20 in a row – economists polled by Reuters predict a 10,000 increase – it would mark the longest uninterrupted run of manufacturing employment expansion in a generation, matching the run from January 1983 through August 1984.

But while comparable in length, the current manufacturing renaissance pales in terms of total jobs created. Back then, U.S. factories added 1.34 million workers, more than three times the 417,000 new jobs since the current streak began in August 2017.

For early clues on the jobs data, cast an eye on Monday’s ISM Manufacturing Index. Its employment component is closely correlated with the Labor Department’s manufacturing payrolls series. ISM’s February reading on factory employment, at 52.3, was the weakest in more than two years. Should it drop below 50, the level separating expansion from contraction in the ISM series, it could signal an end to manufacturing employment’s long run. The last time ISM had a sub-50 print was September 2016. That month, U.S. factories cut 3,000 jobs.

4/DEAL WITH IT

A month has passed since the United States and China missed an initial deadline to agree a trade deal. The first face-to-face meetings between the two sides since that deadline were apparently “constructive” and “productive”; now Chinese Vice Premier Liu He is to travel to Washington for further talks.

In the meantime though, tariffs on Chinese goods worth $ 250 billion are in play and that is hurting – China as well as its Asian neighbors who are linked to it through complex supply chains. March Purchasing Managers Indexes are expected to show a further deterioration in sentiment across the region and another source of pressure is the worry of a recession in the United States.

The one thing preventing panic is the hope Beijing will provide enough stimulus to offset slowing trade. Central bankers around Asia have started hinting at interest rate cuts, relieved at the end of the Fed’s policy-tightening campaign. But the upcoming activity data might show how soon they need to act.

5/NO THANKSGIVING FOR THIS TURKEY

Last year’s lira crisis tipped Turkey into a painful recession, ended its credit-fueled economic boom and complicated President Tayyip Erdogan’s task of selling his economic success story to voters. They are headed to the ballot box on Sunday for the first time since last year’s currency meltdown.

Polls suggest Erdogan could lose Ankara, the city from which he has ruled Turkey with an increasingly iron grip since 2003. His AK Party could face a tough race in Istanbul, where Erdogan was once mayor. But policymakers’ efforts shore up the currency before the election have run into trouble and moves to curb offshore lira supply has pushed investors into selling Turkish stocks and bonds.

The question now is how quickly policymakers will normalize their approach to markets. And even if they do, will pressure on the lira ease up and can they win back the trust of investors, some of whom will have taken losses from the recent episode? For an economy that’s already reeling how much damage have these unorthodox measures inflicted? And finally, will the stress percolate to European banks active in Turkey? BBVA (MC:), Unicredit (MI:), ING, HSBC and BNP Paribas (PA:) all have varying degrees of exposure.

Let’s block ads! (Why?)

Economy News

Forex – U.S. Dollar After Spending Data, Pound Slides on Brexit Vote

© Reuters.  © Reuters.

Investing.com – The greenback gave up earlier gains by mid-morning in New York on Friday, after data showing only the weakest of bounces in U.S. consumer spending in January.

The , which measures the greenback’s strength against a basket of six major currencies, slipped 0.1% to 96.683 as of 10:14 AM ET (14:14 GMT). It had earlier hit a two-week high of 96.907.

, which accounts for more than two-thirds of U.S. economic activity, increased 0.1% in January, following a 0.6% decline in December, its first drop since September 2016.

The data were consistent with other signs of weakness this week from the housing market and a downward revision to fourth-quarter gross domestic product. However, they were offset by a stronger-than-expected reading for consumer sentiment from the and by slightly better-than-expected numbers on for last month.

The dollar rose against the safe-haven yen, with rising 0.2% to 110.74.

Elsewhere, the fell briefly below $ 1.3000 as Prime Minister Theresa May’s EU Withdrawal Agreement failed in the House of Commons for a third time, by a margin of 286-344. The defeat leaves a ‘Hard’ Brexit with no transitional arrangements on April 12th as the default option.

Elsewhere, the dollar rose another 1.7% against the Turkish lira as the central bank fought short-sellers ahead of municipal elections at the weekend. The loonie was up, with falling 0.6% to 1.3347 and inched up 0.1% to 1.1227.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Let’s block ads! (Why?)

Forex News

Lights around the world are turning off for Earth Hour

It may be darker than usual in your neighborhood tonight, but don’t be alarmed. People around the world are participating in a movement called Earth Hour. Every year, people turn their lights off to spread awareness about sustainability and climate change. 

This year, Earth Hour takes place on March 30 from 8:30 p.m. to 9:30 p.m. local time. Supporters can sign a pledge to decrease their environmental footprint by taking part in the blackout, and share their experience on social media using the hashtags #Connect2Earth.  

Earth Hour was first started by the World Wildlife Fund — the leading organization in wildlife conservation and endangered species — in 2007 in Sydney, Australia. WWF encouraged millions of people to switch their lights off for one hour to support climate change action. 

Since then, the movement has grown globally and is now the world’s largest grassroots movement for the environment. 

Landmarks including Big Ben in London, Egypt’s Great Pyramids, Brazil’s Christ the Redeemer statue, the Sydney Opera House, the Colosseum in Rome, the Eiffel Tower in Paris, Burj Khalifa in Dubai and New York City’s Empire State Building have all taken part in going dark.     

Millions of people are expected to participate this year in more than 180 countries. WWF hopes the event will send a message to government officials that protecting the planet should be their top priority. 

“We’re the first generation to know we are destroying our planet,” WWF said. “And we could be the last that can do anything about it.”

This year, climate change is at the forefront of the conversation more than ever, thanks in part to an initiative by teen climate activist Greta Thunberg, who was has been nominated for the Nobel Peace Prize. She started the Youth Climate Strike movement last September, which has since grown to include hundreds of thousands of students around the world who skip school on Fridays to urge world leaders to act on climate change. 

The world faces an “existential crisis, the biggest crisis humanity ever has faced, and still it has been ignored for decades by those that have known about it,” Thunberg said during a strike on March 15. “And you know who you are, you that have ignored this and are most guilty of this.”

HONG KONG-ENVIRONMENT-EARTH-HOUR
The Victoria Harbour is seen after its lights went out for the Earth Hour environmental campaign in Hong Kong on March 30, 2019.  Dale De La Rey/AFP/Getty Images

Let’s block ads! (Why?)

World – CBSNews.com

Barty beats Pliskova to win maiden Miami Open title

© Reuters. Tennis: Miami Open © Reuters. Tennis: Miami Open

(Reuters) – Ashleigh Barty defeated Karolina Pliskova 7-6(1) 6-3 on Saturday to win her maiden Miami Open title and become the first Australian woman since 2013 to reach the top 10 in the world rankings.

After dominating the first set tiebreak, Barty broke the big-serving Pliskova in a 12-minute game to open the second set.

From there on the fatigued Czech, whose semi-final win over Simona Halep finished after 1 am local time earlier on Saturday due to rain delays, put up little resistance.

Barty pumped her fists when Pliskova sent a forehand long on match point to hand the 22-year-old the biggest win of her career, which includes a $ 1.3 million pay check.

Barty said the key to the match was extending rallies on the warm day in Southern (NYSE:) Florida.

“It was important for me to try to make it physical,” she said in an on-court interview.

“Kaja has the ability to really hit you off the court and take it away from you so I knew I had to have my running shoes on today to try and make as many balls as possible.”

Barty fired 15 aces, with Pliskova barely making an effort to return some of them.

“I tried to make the most of it,” she said of playing an exhausted opponent.

“You don’t get these opportunities every single day and it was important for me to continue and try to do the right things and enjoy the moment as well.”

The win capped a memorable week for the 2011 junior Wimbledon champion, who took a break from tennis in 2014 to play professional cricket for the Brisbane Heat.

Barty, the 2018 U.S. Open women’s doubles champion, is the first Australian women since Samantha Stosur to crack the WTA’s singles top 10.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Let’s block ads! (Why?)

Sports and General News

Weak U.S. economic data and risk-on move end three-day dollar rally

© Reuters. FILE PHOTO: An employee counts U.S dollar bills at a money exchange office in central Cairo © Reuters. FILE PHOTO: An employee counts U.S dollar bills at a money exchange office in central Cairo

By Kate Duguid

NEW YORK (Reuters) – The on Friday morning was lower as increased investor appetite for risk hurt safe-haven currencies and after U.S. inflation data came in weaker than expected, adding to the conviction that the country’s economy is losing momentum.

With many currencies on the defensive, the dollar had this week weathered a decline in benchmark Treasury yields to a 15-month low. But the buck was pulled lower on Friday morning by the twin forces of weak data and a global risk-on move.

U.S. consumer spending rebounded less than expected in January amid muted price pressures, as measured by the Personal Consumption Expenditure index (PCE), the Federal Reserve’s preferred measure of inflation, according to the Commerce Department, which also reported that incomes rose modestly in February. Consumer spending accounts for more than two-thirds of American economic activity.

With growth slower and inflation benign, Friday’s data bolstered the Fed’s case for ending its three-year monetary tightening campaign.

“It was a soft number,” said Greg Anderson, global head of foreign exchange strategy at BMO Capital Markets, referring the PCE inflation measure. “It is a relief that there’s no reason for the Fed to have to raise rates.”

In spite of the soft data, investors on Friday morning favored riskier assets such as stocks, over safe-haven currencies like the dollar, the Japanese yen and the Swiss franc.

“It’s quarter-end today and so people gear up for this for months,” said Anderson. Investors “came into it fearing a meltdown in dollar/yen, which didn’t happen.” Against the Japanese currency, the dollar was 0.18 percent stronger, last at 110.82 yen.

The euro on Friday was headed for its worst month since October, weighed down by fears about economic growth and cautious signals from the European Central Bank. Policymakers cut growth forecasts for the euro zone economy earlier this month and launched a new round of cheap loans to its banks.

Weaker-than-expected economic surveys from Germany and dovish signals from the ECB have pushed hedge funds to reduce their long euro positions. The euro was a tad higher at $ 1.123 but remained down about 1.2 percent for the month.

Sterling was up early in the North American session, last trading 0.17 percent higher at $ 1.307 ahead of a crucial parliamentary vote on Prime Minister Theresa May’s deal to withdraw Britain from the European Union.

Although it does not appear that May has the votes to pass her twice-defeated Brexit deal, markets have begun to price in a long delay in the proceedings, Anderson said, which is boosting both sterling and risk assets.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Let’s block ads! (Why?)

Forex News

Forexlive Americas FX news wrap: Another vote defeat by PM May

Forex news for NY trading on March 29, 2019

In other markets:

  • Spot gold +$ 2.05 or 0.16% at $ 1292.47. The high reached $ 1300.10. The low extended to $ 1286.79
  • WTI crude oil futures is trading up $ .88 or 1.48% at $ 60.18

In the US stock market today, the major indices moved higher helped by hopes for US/China deal. 

  • S&P index rose 18.96 points or 0.67% at 2834.40. The high reached 2835.40. The low extended to 2819.23
  • Nasdaq index rose 60.15 points or 0.78% at 7729.32.  The high reached 7733.625. The low extended to 7688.512
  • Dow industrial average rose 211.22 points or 0.82% at 25928.68.  The high reached 25926.26. The low extended to 25771.67

For the month, the major indices closed with modest gains

  • S&P index rose 1.79%
  • NASDAQ index rose 2.61%
  • Dow industrial average rose 0.05%

For the quarter, the gains were stellar with the:

  • S&P index +13.07%
  • NASDAQ index +16.49%
  • Dow industrial average +11.15%

In the US debt market today, the shorter end of the curve rose while the longer end had less gains (or moved lower). 

US yields were mixed today with the shorter and moving higher in the longer end steady or downIn the forex market today, the snapshot of the strongest and weakest is showing the CAD is the strongest while the JPY and GBP are the weakest.
The % changes of the major currencies vs each other today.
For the CAD, the loonie benefitted from better GDP and producer price data.  GDP rose by 0.3% vs 0.0%. The industrial product prices rose by 0.3% , while raw materials prices increased by 4.6% after a 4% gain in the prior month.  That helped to send the USDCAD down from 1.3424 to a low of 1.33408.  In the process, the pair moved back below its 200 hour MA at 1.33807. In the new week ahead, if that 200 hour MA is not broken to the upside, the sellers remain in control, with the 100 day MA at 1.33098 a key target on the downside next week.  
The GBP remains under pressure today as the withdrawal agreement vote (PM May’s latest attempt to come to an agreement) was voted down by a vote of 286 for to 344 against. The net result, is the Article 50 date will be April 12th instead of May 22.  There is still time to avoid a no-deal Brexit, but if a deal can’t be made by now, why should it change. The price action did see the price tumble froma about 1.3055 to a low of 1.2976. The one potentially bullish development is that at the low, the pair tested the 200 day MA at 1.2978, and bounced.  However the correction was modest (less than 50% of the day’s trading range.  So sellers remain in control. In the new week, a move below the 200 day MA would be more bearish.    

IN addition to the USD falling vs the CAD, the greenback also fell vs the AUD and the NZD.  Recall the NZDUSD fell sharply on Wednesday this week on the back of the shift in bias from the RBNZ from neutral to more accomodative (the next move is likely to be a cut).  That send the NZDUSD tumbling lower from about 0.6918 to 0.6786 on Wednesday and below its 100 day MA around the 0.6908 level. SInce then, the price action has seen the price trade above and below the 100 day MA with a high of 0.6827 and a low of 0.6773. We are closing just below the 100 day MA at around the 0.6800 level (100 day MA at 0.6908).  That 100 day MA will be the bullish above/bearish below barometer for traders next week.  

The AUDUSD also moved higher today (hopes for trade deal). However, it stalled on three separate tries at extending above the 100 and 200 hour MA at 0.7100 area and the 505 of the week’s trading range at 0.7107. The high today reached 0.7104.    The pair is closing near 0.7096.  Next week, the 0.7100-07 area will be the barometer for the bulls and bears. Keep below is more bearish. Move above, would be more bullish. 

For the USDJPY, the pair is closing near the week’s highs (the low was reached on Monday at 109.69).  The high for the week was reached today at 110.94. The price is closing at 110.81.  Technically, the pair is closing above its 100 hour MA at 110.46 and 200 hour MA at 110.578.  Stay above in the new week should see more upside potential.   On the topside, the next key target is the 100 day MA at 111.107.  The price has not been above that MA since the more dovish FOMC statement/presser on March 20. 

Thank you for your support and wishing you all happy and healthy weekend. 

Let’s block ads! (Why?)

Forexlive RSS Breaking news feed

Video: Brexit, the Canadian debt myth and the pair to watch right now

HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all of your initial investment; do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions.

ADVISORY WARNING: FOREXLIVE™ provides references and links to selected blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the blogs or other sources of information. Clients and prospects are advised to carefully consider the opinions and analysis offered in the blogs or other information sources in the context of the client or prospect’s individual analysis and decision making. None of the blogs or other sources of information is to be considered as constituting a track record. Past performance is no guarantee of future results and FOREXLIVE™ specifically advises clients and prospects to carefully review all claims and representations made by advisors, bloggers, money managers and system vendors before investing any funds or opening an account with any Forex dealer. Any news, opinions, research, data, or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. FOREXLIVE™ expressly disclaims any liability for any lost principal or profits without limitation which may arise directly or indirectly from the use of or reliance on such information. As with all such advisory services, past results are never a guarantee of future results.

Let’s block ads! (Why?)

Forexlive RSS Breaking news feed