Session close (Monday, Feb. 12): Settled at 1.23085, up 49 ticks
Fundamentals: In a quiet currency session ahead of a busy week of data, the euro grinded higher since bottoming early this morning. The U.S. Federal Budget Balance came in a little lighter than expected and this put pressure on the dollar late in the session. Tomorrow there is U.S. Business Optimism data at 5:00 a.m. Central and Cleveland Fed President Mester speaks at 7:00. Wednesday is the day circled on traders’ calendars with German CPI and GDP data due out ahead of the Eurozone GDP read. U.S. CPI and Retail Sales follows.
Technicals: Today was a constructive session for the Euro, trading higher from Friday’s low and major three-star support. Please sign up for Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.
Session close: Settled at .92205, down 10 ticks
Fundamentals: Today was a very quiet inside session for the yen ahead of PPI data tonight at 5:50 p.m. Central. The major focus will be GDP data out of Japan tomorrow night. This is the first look at Q4 and expectations QoQ come in at .2% and YoY at .9%. Treasury prices continue to trade under pressure and this has held back the yen from further gains against a weak U.S. dollar.
Technicals: The yen ran to a new swing high of .9275 on Friday before retreating.
Session close: Settled at .7840, up 52 ticks
Fundamentals: The Aussie gained significant ground against a quiet U.S. dollar today. The Aussie added gains after settlement on comments from RBA Governor Ellis on wage growth. NAB Business Confidence is due at 6:30 p.m. Central. Though there was not much news throughout the session, one can look to recent gains in the Aussie through December and January as motivation for buyers to step in after this pullback.
Technicals: Price action has reversed more than a penny from Friday’s low and the momentum is quickly moving back to the bull camp.
Session close: Settled at .79305, up 0.5 ticks
Fundamentals: The Canadian struggled in today’s session despite comments from Prime Minister Trudeau over the weekend that there is a “clear path forward on NAFTA”. However, crude oil took a beating on Friday while Canadian Employment data was horrendous. But still, the Canadian managed to notch a session only down 15 ticks. Jobs data showed a loss of 88,000 jobs, the biggest loss in nine years, and the Unemployment rate ticked up to 5.9%. Though expectations didn’t show this, it was due to a raise in minimum wage beginning Jan. 1. The Canadian initially lost more than half a penny to a low of 0.78805. Crude put in its worst week since October 2016 but the Canadian has held ground well considering all of this.
Technicals: Price action continues to hug major three-star support at .7931-.7949, a level that we find very favorable to be long against. Please sign up for Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.