Forex news for US trading on October 13, 2015:
- BOA Merrill Lynch expects the ECB to extend QE in December
- Never fear, Bullard's here
- Fed's Bullard says liftoff is appropriate despite challenges
- GBPUSD makes its mind up and wants to see more downside
- Forex technical analysis: EURUSD fight continues with an upside tilt
- Bullard says unemployment will fall deep into the 4% range
- Forex technical analysis: USDJPY breaking....(I hope...Maybe...We'll see)
- The three worst trading ideas
- Bullard says equities have returned to normal valuations
- Two knights in shining trading jackets want to rescue the pound
- Fed survey sees expected spending growth slip to the lowest on record
- Another off day for Europe's stock markets
- 5 lessons from Fortress Macro Fund's closing
- Fed's Tarullo on CNBC: Right now, expectation is not appropriate to raise rates
- Venezuela says oil producer technical meeting to be held October 21
- UK labour market preview: All eyes on wages once again
The dollar was mixed in trading today. It was down against the EUR, JPY, CHF, but up against the GBP, CAD, AUD and NZD.
Fed's Bullard was true to form saying that liftoff is appropriate. Fed's Tarullo (Board member and voter) said it was not appropriate to raise rates at this time.
The EURUSD is up for the 4th consecutive day but the range for the 1st two days of the week is a stingy 67 pips. Look for a break and some action outside the range in the next 24 hours.
GBPUSD tumbled suspiciously 10 minutes before inflation data in the London morning session. In the North American session, the pair moved to new session lows at 1.5200 before moving back higher and closing near the 200 hour MA at the 1.5256 level. Employment data will come out tomorrow. Traders will be focused on wages. EURGBP rallied to the 50% of the move down from the September 2014 high at 0.7499 (the high extended to 0.7492). Sellers entered to push the price back off. The data tomorrow will play a key roll in the pair going forward.
The USDJPY tried to break lower - falling below the low closing level going back to September 7 at the 119.72 level. The low extended to 119.54. The pair is trading right around that 119.72 level at the close.
Oil prices reached a high of $48.43 - up about $1.43 on the day - before moving back lower and into negative territory (ending down -$0.50 on the day). The up and down action sent the USDCAD lower than higher in the North American session. The pair is ending near the days midpoint.
RBNZ Wheeler said late in the day that "further easing seems likely" and the NZDUSD fell sharply below the 100 day MA at the 0.6638 level (low reached 0.6618). The sellers near the lows on the headlines started to scramble when the price did not break any lower, and the price pushed back above the key MA The NZDUSD has closed above the key 100 day MA the last three days. The last time the pair closed above this key technical level was back in April.
- CPI data is out in China tonight. Est 1.8% YoY vs 2.0%
- UK employment data will be released. Watch wages at 3.1% and 3.0% ex bonuses.
- US Retail sales will be the highlight in the US tomorrow. Ex Auto is expected to come in at -0.1%. The headline is estimated at +0.2%. Ex Auto and Gas is expected to rise by 0.3%.