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Forexlive Americas Forex news wrap: No dollar buying hangover yet

Forex news headlines for NY trading on December 15, 2016.

In other markets today:

  • S&P index +8.75 points or 0.39%
  • NASDAQ composite index +20.18 points or 0.37%
  • Dow industrial average up 59.71 points or 0.30%
  • 2 year notes 1.267% unchanged
  • 5 -year notes 2.09%, +4.2 basis points
  • 10 year note 2.598%, +2.8 basis points
  • 30 year bond 33.158% -2.1 basis points
  • Spot gold $1128 $-14.50 or -1.28%
  • Crude oil futures of $51, unchanged
  • The USD was the strongest currency of the majors today, while the NAD was the weakest

Often after a big move in a currency as a result of some news or event like employment or a central bank decision, you have a hangover correction the next trading day. Yesterday, the USD was the strongest currency after the Fed raised rates, and the expectations for rate path was increased. Today, the USD was again the strongest currency - rising once again against all the major pairs.

The move higher was helped by some favorable data,. regional manufacturing data from the Empire State (+9.0 vs 3.2 est) and Philadelphia (21.5 vs 9.1) were much better than expectations. The Markit Flash Manufacturing data was also elevated at 54.2. Finally NAHB Housing market index was higher at 70 vs 63 estimate. Technically, there was some breakouts that should help to keep the greenback bid.

For the EURUSD it broke below key support at the 1.0500 level and then the low from 2015 at 1.0462. That break to new lows going back to January 2003 (yes 2003) triggered stops. The high corrective price could only get to 1.0448 in the NY session. The low reached as low as 1.0366 and rebounded over the last few hours of the day. However, the pair could only reach the 38.2% of the days high to low range at the 1.04317. So most of the decline was maintained. We are ending the day at 1.0413

The USDJPY continued it's race to the upside with the pair ending the day up about 0.92%. The move higher took the pair right up a resistance area between 118.06 and 118.51 (the high reached 118.65). Although the top extreme at 118.51 was broken twice, there was some sellers against the area. The pair has moved from the election day low near 101.00 to 118.65. It is due for a correction. So be aware of that quasi hold near a key resistance level.

The BOE kept rates unchanged and suggested they could ease or tighten going forward. Like the other currencies the GBP lost ground against the dollar, with the pair picking up the downside momentum on the break of the 200 bar MA on the 4 hour chart at the 1.24935 level. Support buyers did show up near the November 28th low at 1.2384 (the low reached 1.2375) and rebounded into the close but did manage to find sellers against the 100 bar MA on the 5-minute chart (see chart below). That MA line will be eyed in the new trading day for intraday bullish/bearish bias clues.

For the technical looks at the AUDUSD and the NZDUSD check out the recent posts ) and .

For the technical looks at the AUDUSD and the NZDUSD check out the recent posts HERE (for NZDUSD ) and HERE (for AUDUSD) .

Hoping all traders starting your Friday on the other side of the world, have a great and safe weekend.

Below are the % changes of the major currencies vs each other.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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