Forex news for North American trading on March 22, 2021.
- Fed head Powell says Fed will continue to support the economy 'for as long as it takes'
- Nasdaq closes higher for the 2nd consecutive day and leads the indices higher
- New Zealand announces measures to ease housing prices
- US 10 year yield test 100 hour MA
- White House says $3 trillion spending report is premature
- Crude oil futures settle at $61.55
- Fed's Quarles: Banks using Libor in new contracts after 2021 create 'safety and soundness' risks
- Biden advisors readying multi-part $3 trillion infrastructure package
- US Press Sec: China meeting was substantive despite focus on theatrics
- German lockdown to be extended until April 18 - report
- At some point taxes will be like the sword of Damocles over the market
- ECB PEPP net purchases +21.05B vs +14.0B prior
- Fed's Barkin: We will be looking at trimmed mean inflation for next 6 months
- Germany prepares supplementary 60.4B euro budget
- US February existing home sales 6.22m vs 6.50m expected
- Fed's Powell: We don't want to destabilize with a central bank currency
- UK's Johnson: He's 'reassured' the EU doesn't want vaccine blockades
- Chicago Fed national activity index -1.09 vs +0.71 expected
- The CHF is the strongest and the USD is the weakest as NA traders enter for the day
- ECB's Knot: 'Major part' of yield rise this year due to better fundamentals
In other markets as NY session comes to a close:
- Spot gold is trading down $6.06 or -0.35% at $1739.11
- Spot silver is trading down $0.48 or -1.85% at $25.75
- WTI crude oil futures for May delivery are trading down $0.14 or -0.23% at $61.30
- Bitcoin is trading down $-2290 or -3.96% at $55,547
him quiet day on the economic front as the week gets off to a start. Existing home sales in the US came in weaker than expected 6.22 million annualize versus 6.5 million estimate. Inventory it is down -29.5% y/y to record low 1.03m units. The weather in February was also brutal which likely contributed to a decline. Nevertheless interest rates are moving higher and prices showed a gain of 15.8% year on year which can be a drag going forward.
Fed's Barking got the Fed Talk going this week by saying that over the next six months we need to 'look through' 12 month inflation, and told the market that the Fed will be focused on month-over-month inflation and trimmed mean inflation. On growth, he added retailers are already seeing things 'flying off the shelves' because of stimulus cheques, and prospects for the economy are getting stronger.
Fed's Powell will testify with Treas Sec Yellen tomorrow. There is a full schedule of speakers se for tomorrow:
- Feds Bullard discusses economy at LSE event (9 AM ET)
- Fed's Barkin takes part in virtual discussion (11 AM ET)
- Powell, Yellen appear before House panel on CARES act (12 PM ET)
- Feds Williams takes part in virtual discussion ( 2:45 PM ET)
In the US debt market today, yields declines with the yield curve flattening (the 30 year moved down the most). The 2-10 year spread moved from 157.18 basis points on Friday to 153.65 near the close today.
Lower yields helped to push the Nasdaq shares higher. The S&P and Dow also closed higher but off the highs for the day. The Russell 2000 index meanwhile fell on at -0.90%.
European shares were mixed with German, UK and Italy shares higher, and France, Spain, Portugal markets lower.
In the Forex market today, the USD started the North American session as the weakest of the majors, but was then outpaced by the falling CAD and GBP currencies. The greenback was still lower but was near unchanged versus the GBP, JPY, CAD, AUD and NZD. It fell the most mercy EUR and CHF. The CHF was the strongest currency today after cracking back below its 200 and 100 hour moving averages.
Some technical levels to eye in some of the major currency pairs:
- EURUSD: The EURUSD broke back above its 100 and 200 hour moving averages at 1.1917 and 1.1927. The high price extended up to 1.19464 before rotating lower. The 200 hour moving average 1.1927 will be the early barometer for the buyers and sellers. Stay above is more bullish. Move below it and the 100 hour MA at 1.19176 and the bias shifts back to the downside.
- GBPUSD: The GBPUSD trading down, up, down and up in a confined trading range today. The pair remains well below its 100 hour moving average above at 1.3899 and 200 hour moving average at 1.39099. The current price is trading at 1.38558. That tilt a bias more to the downside. The next key target area comes between 1.3801 and 1.3808. Move below that and then the March low at 1.3778, and the sellers start to believe more (and control more too).
- USDJPY: The USDJPY was another pair that saw a lot of ups and downs in trading today. Technically, the price remain below its 200 hour moving average at 108.90 and 100 hour moving average at 108.930. The price is currently trading up 108.813. The moving average will be the barometer in the new trading day on the topside. Move above and it's more bullish. Stay below and the sellers remain in control. On the downside, the watch the 108.60 level. A break below that level should solicit more selling with swing was going back to March 10 through March 11 near 108.328.