FRIDAY MARKET CLOSE WRAP
In other markets , the snapshot near the close of the day showing:
- Spot gold, $-2.34 or -0.16% at $1462
- WTI crude oil futures $-0.58 or -0.99% at $58.00
- Bitcoin on Coinbase fell to a session low $6775.47, but has rebounded up to $7300. That is still down about $295 on the day but it could've been a lot worse
The USD moved higher today with most of the gains vs the EUR, GBP and the CHF. The currency was only lower vs the NZD on the day. Overall, the NZD was the strongest while the GBP, CHF and EUR were the weakest.
The fundamental catalyst for the moves were better-than-expected Markit PMI data and better Michigan consumer sentiment. Also helping were technical moves, especially in the GBPUSD, EURUSD and USDCHF.
For the GBPUSD, the pair had an initial catalyst (ahead of the stronger US data) from better PMI data. That helped to push the pair below the 200 hour moving average at 1.28963. That data the price down toward a support area around the 1.2866 level where it consolidated into the NY session. NY traders took the pair even lower with the pair initially stalling at the 61.8% retracement at 1.28508. When that was broken, the selling took the price even lower to the next targets at the 1.2821-24 where buyers entered to slow the decline The last 5 or 6 hours corrected marginally to the 1.2840 level. For the week, the pair is lower (closed at 1.2900 last Friday), but moved higher to 1.2984 on Monday and other high on Thursday at 1.2969, before moving lower yesterday and today.
The EURUSD came in the day with a 51 pip trading range for the week. If that remain the range, it would be the most narrow trading range since at least 2002. Coming into the New York session the range was still 51 pips. However the economic data helped to push the price below the low for the week at 1.1046 and the pair did not really slow until reaching the November 15 low at 1.10145. So instead of the 51 pip trading range, the range for the week is ending at around 83 pips. Although still narrow by historical standards it certainly sounds better overall. The technical catalyst for the move was the break below the 200 hour moving average at 1.1046 (that also happened to be the week's low coming into today). Fallen below the 61.8% retracement at 1.10298, also helped to push the pair to the downside
The USDCHF, traded mostly higher in the European session up to the 200 day moving average at 0.99463. The correction off that level was modest and the pair kept banging against the topside moving average, until that time it broke through. The high price reached 0.9980 which was just above the previous November high of 0.9978. That was good enough to stalled the rise. The price is currently trading at 0.9968 near the close for the week. And next week's trading staying above the 200 day moving average will keep the bulls in charge. On the topside getting above the 0.9978 – 80 level will be the closest target.
In other pairs:
- The USDCAD fell after the retail sales were better than expectations. However, dip buyers came in against the 200 hour moving average (currently at 1.3255) and when the price move back above its 200 day moving average at 1.3274, tthe Friday squeeze to the upside was on. The move did not stop until just below the 1.3300 level, where natural sellers entered.
- The NZDUSD spent the last 8 hour in the NY session trading between the 100 hour MA above at 0.64114 adn the 200 hour MA below at 0.6399. The pair is settling in between at 64059.
For the US stock market today, the major indices are closed higher with the Dow leading the way. European shares were also higher with the UK FTSE 100 leading the way with a gain of 1.22%.
For the week, the story was different with the UK FTSE 100 the only major indices closing with a positive gain. The Portugal PSI20 and the Italian FTSE MIB were the weakest of the major stock indices this week.
November 22, 2019