Ubaidahsan Americas FX information wrap 18 Nov: USD corrects decrease as yields reverse.Shares combined

• Combined ending for US shares to begin the brand new buying and selling week
• Financial calendar in Asia Tuesday, November 19, 2024 – RBA minutes
• Trump Media upfront talks to purchase Crypto Platform BAKKT
• ECBs Vujcic: The danger of inflation undershooting has picked up
• WTI Crude oil settles $2.14 increased at $69.16
• BOEs Greene: UK providers inflation is elevated however on a downward path
• Gold rallies sharply after final week’s tumble of -Four.5%. Worth is up 1.87% in the present day
• Main European indices are closing combined
• US Trump workforce (sans Elon Musk) supporting former Fed member Kevin Warsh as Treasury Sec.
• US NAHB housing market index for November 46 versus 43 estimate
• ECBs Stournaras: A 25 foundation level minimize by the tip of the yr is affordable
• Overseas buyers in C$ rises by $29.3B vs $10.33B final month (revised from $9.97B)
• Canada housing begins for Oct (annualized) 240.8K vs 240.0K estimate
• The technicals in play to begin the brand new buying and selling week within the foreign exchange
• ForexLive European FX information wrap: USD/JPY again up above 155.00 degree
• ECB’s Makhlouf: The proof would have to be overwhelming for 50 bps transfer in December
• ECB’s Makhlouf: I do not suppose the job is finished on taming inflation

Markets:

• Gold $48.79 or 1.90% at $2611.36
• US 10-year yield down -1.Zero foundation factors at Four.415%
• US two yr yield down -1.9 foundation factors at Four.282%
• WTI crude oil up $2.22 or three.31% and $69.24
• S&P 500 rose Zero.39%
• NASDAQ index rose Zero.60%
• Russell 2000 rose Zero.11%

The US greenback corrected decrease in buying and selling in the present day as yields went from optimistic to destructive intraday, and robust shopping for within the US greenback over the past six or seven days lastly led to a corrective probing to the draw back helped by technicals.

The one financial information was the NAHB housing market index for November which got here in higher than anticipated at 46 versus 43 estimate. That was adequate for the best degree since April (final month it got here in at 43). Nonetheless, a studying beneath 50 is taken into account destructive for the housing market.

• Present circumstances rose +2 to 49
• Expectations rose +7 to 64
• Purchaser site visitors rose +three to 32
• Housing market index is and it is highest degree since April

the most important mover out there was the AUDUSD which rose Zero.70% (USD fell). The USD was solely increased on the day vs the JPY with a achieve of Zero.18%.

Beneath are the % adjustments of the USD vs the key currenies:

• EUR, -Zero.54%
• GBP, -Zero.48%
• JPY +Zero.18%
• CHF, -Zero.58%
• CAD, -Zero.50%
• AUD, -Zero.73%
• NZD -Zero.53%

Technically talking:

• USDJPY: The USDJPY initially transfer decrease within the early European session and examined its rising 200 hour shifting common (at the moment at 154.40). The worth bounced off that degree rising to and thru its 100 hour shifting common at the moment at 155.258. The excessive worth reached 155.348 earlier than rotating again to the draw back. The worth is buying and selling at 154.63 forward of its rising 200-hour shifting common of 154.408. Each the 100 and 200-hour shifting averages will probably be key barometer’s for each consumers and sellers into the brand new buying and selling day. Resistance on the 100-hour shifting common of 155.258, and assist on the 200 hour shifting common at 154.408.
• EURUSD: The EURUSD moved increased in buying and selling in the present day and stretched to swing space resistance between 1.0600 and 1.0610. Sellers leaned and the worth rotated decrease. THe present costs buying and selling at 1.0599 going into the brand new buying and selling day. If the 1.0610 degree will be damaged, topside targets embody 1.0649, and the triple backside from late June and early July close to 1.0665 – 1.0670. If resistance holds, a rotation again decrease assist between 1.0515 and 1.05316 is a preliminary targets.
• GBPUSD: The GBPUSD transport within the early US session at 1.26137, and gave consumers the go-ahead to push increased. The worth entered a swing space between 1.2654 and 1.2685. The worth is buying and selling at 1.2677. Additionally in play is its falling 100-hour shifting common of 1.2679. Get above and keep above is extra bullish. Discovering keen sellers towards the extent is extra bearish.
• USDCAD; The USDCAD moved decrease assist by rising oil costs and the USD promoting development in the present day. The worth fell beneath the low worth from final Friday’s commerce at 1.4033 and likewise the 100-hour shifting common at the moment at 1.40237. The present worth is buying and selling at 1.40166. Keep beneath the 1.4023 – 33 degree retains the sellers extra in management at the least within the quick time period. The 1.3978 degree is the following goal on the draw back. That degree corresponds with the excessive worth from 2022.

Have a great morning, day, night.

This text was written by Emma Wang at www.ubaidahsan.com.



Source link