The start to the new trading week is off to a slow start. Remember, the FOMC is in the quiet period ahead of their interest rate decision on January 31. On the economic calendar, the only release was the Conference Board Leading Index which is supposed to foreshadow slower/negative growth. It fell for the 21st consecutive month and traders keep waiting for the recession. Needless to say, the markets are not paying attention.
The ranges for the day of the major currencies vs the 22- day average (about 1 month of trading) shows:
- EURUSD 32 pips vs 63 pip average
- GBPUSD 55 pips vs 85 pip average
- USDJPY 69 pips vs 129 pip average
- USDCHF 35 pips vs 71 pip average
- AUDUSD 48 pips vs 60 pip average
The USDCAD is an exception to some of the upsi and downs. That pair did see steady buying in the North American session with the price moving up to test its key 200 day MA and 100-hour MA at 1.3480 (see chart below). The level is also home to a swing level on the hourly chart at the same level (see red numbered circles on the chart below). Going into the new trading day, that level will be a barometer for buyers and sellers.. Trading above is more bullish. Stay below keeps the sellers in play
The NZDUSD is also trading near session lows with the pair testing the cluster of support defined by the 50% of the move up from the October 26th low at 0.6071, the swing area at 0.6078 and 0.6585 and the 200 day MA at 0.60893 (see video).
Today, the GBP is ending the day as the strongest of the major currencies. The NZD is ending as the weakest . The USD is mostly higher thanks to the USDs strength vs the three commody currencies – the CAD, AUD and the NZD. Versus the EUR, GBP, JPY and the CHF, the gains or losses vs those currencies are minimal (0.04% vs 0.13%).
Looking at other markets today:
- Crude oil is trading higher by $1.21 or 1.77% at $74.55
- Gold fell with by -$9.00 or -0.44% at $2020.47
- Silver fell -$0.54 ore -2.37% at $22.07
- Bitcoin traded below $40,000 for the first time since December 4 to a session low at $39,445. The price is trading back above the level at $40,027
IN the US debt market, yields are trading near mid-range and lower on the day:
- 2 year yield 4.395%, -1.1 basis points
- 5 year yield 4.0313%, -4.1 basis points
- 10 year yield 4.1089%,-3.7 basis points
- 30 year yield, 4.324%, -3.0 bais points
In the US stocks today, both the S&P and the Dow industrial average closed a new record levels. The Nasdaw index is still 4.14% away from the all-time high close at 16057.44. Each of the major indices closed higher for the 3rd day in a row.
The final numbers are showing:
- Dow industrial average rose 138.01 points or 0.36% at 38001.82
- S&P rose 10.62 points or 0.22% at 4850.44
- Nasdaq rose 49.31 points or 0.32% at 15360.28
The Russell 2000 index rose 38.98 points or 2.01% at 1983.38.
