The EUR is the strongest, while the AUD is the weakest as NA traders enter

Technical Analysis

Author: Greg Michalowski | forex

USD to deal with CPI and retail sales at the bottom of the hour.  

As North American traders enter for the day, the EUR is the strongest currency on the back of the German coalition news (and improving technicals).  The  AUD is the weakest with big declines vs the EUR, GBP and CHF leading that currency lower.  

The ranges are showing some good ranges with the EURUSD, GBPUSD, and USDCHF. The EURJPY and GBPJPY are also rocking. Each of those (and other pairs) are trading at extreme levels (highs) indicative of the trend like buying that is taking place.

The focus will shift to the US and the USD at the bottom of the hour as US CPI for December and retail sales for December will be released:
  • US CPI expected to rise by 0.1% and 0.2% ex food and energy.  Year on year CPI is expected to show a 2.1% gain and 1.7% gain Ex food and energy
  • Retail sales advanced (December) are expected to rise by 0.5% after a 0.8% gain in November.  Ex auto is expected to rise by 0.3%.  The control group is expected to rise by 0.4%. 
In other markets, a snapshot shows:
  • Spot gold of $9.62 or 0.73% at $1332
  • WTI crude oil futures are down $.61 or -0.96% at $63.19
  • CME bitcoin futures are up $600 or 4.48%.  Riffle is about $.12 or 6.10% at $2.08
  • US yields are trading little changed: two-year 1.95%, up 0.6 basis points.  10 year 2.328%, unchanged.  10 year 2.542%, up 0.6 basis points.  30 year 2.865%, unchanged
  • US stock futures are up.  S&P futures were up 3.5 points.  Dow futures are up 85 points.  NASDAQ futures are up 10 points.  Facebook announced a new family and friends initiative for posts and the stock is down $7.85.  J.P. Morgan announced earnings in their stock is down about one dollar in premarket trading.
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