Forex news for NY trading on August 6, 2018

In other markets:

  • Spot gold was down -$6.21 or -0.51% at $1207.52.
  • WTI crude oil is up $0.41 or +0.60% at $68.90
  • Bitcoin is trading at $6919 down -$131. The bias is bearish. For a technical review CLICK HERE.

Stocks in Europe were mostly lower, but only marginally. While the stocks in the US rose with the tech heavy Nasdaq leading the way higher. The US major indices closed near the day high levels after shrugging off more trade war worries.

In the debt market, US yields are ending mixed, with the 2 and 30 year up marginally, and the 5 and 10 year yields down marginally.

In the forex market, a snapshot of the winners and losers is showing the USD is the strongest and the GBP is the weakest. That was the ranking for the entire US session, but the USD lost some of the gains, and the GBP recovered some of its losses throughout the day. The other currencies were mixed with narrow gains or losses vs each other.

Apart from the GBPUSD, the ranges for the pairs vs the USD were well below their 22 day average trading ranges. Only the EURGBP and GBPNZD reached the average ranges for the major crosses.

Helping to keep the market subdued was the absence of any economic data. The only thing that was released was an employment trend index from the Conference Board, which is a compilation of old data (so not big mover).

Other than that, the news was sparce:

  • The turkish lira continued the trend to record low levels on the potential for US sanctions and a stronger USD
  • There was chatter from Mexico's Guajardo and Smith that had some good and bad. The USDMXN recovered off new lows going back to April, but remain near the lowest levels.

The EURUSD rebounded from a low of 1.1529 to a NY session high of 1.15697. That was near the close from Friday, but below the swing low from July 19th.

The GBPUSD did all the selling in the European morning session. The NY session found support at a lower tend line at 1.2919, and there was a modest rebound to a high of 1.2952. That was still well short of the close from Friday at 1.2997 and the swing low from July 19th at 1.29565.

The USDJPY traded in a 19 pip range in the NY session and remains between the 100 hour MA above at 111.57 and the 200 hour MA below (at 111.32). The price closed at 111.39.

The USDCAD stalled near the 200 hour (at 1.30298 now) and fell below the broken 100 hour MA at 1.3008 in the US morning session. The price stayed below that MA line for the last 6 hours of trading. Stay below is more bearish.

Have a great day, evening and night...