USD/JPY has been consolidating around its highest levels since Christmas. The pair registered a high of 118.70 on Dec 15 and has been trading around that level eversince. Low volatility and low liquidity were to be expected after Christmas as market participants are away and no major news are expected to stir the market.
Traders and investors are taking a few days off to be with their families all around the world as business is put on hold. At least for a while before we start anew on Jan 1. Until then, the market is expected to trade flat with a calm US dollar.
USD/JPY can be expected to trade around 117.00-118.05 until volatility is back on stage and market is ready to take it to another level. Current market price is 117.28 in this post-Christmas calm Tuesday.
EUR/USD is trading relatively unchanged since yesterday’s session. The pair is now 1.0451 in a market environment that lacks volatility and liquidity. The pair is expected to keep gravitating towards current levels until New Years’ Eve.
USD/CAD is having one last big move before the year ends in a few days. In the last trading days of 2016, USD/CAD registers a move to the upsde with prices going above 1.3550. Today, the pair is trading at its highest since the beginning of the bullish move on Dec 14. The price then was 1.3080 and had just met the long-term support.
Bulls did not miss the chance to go in and back the US dollar against its counterparty. Since then, the pair has made good progress going as high as 1.3580, which is seen as immediate resistance and also a double top.
If price goes above current levels, we might see a continuation of the upward move in early 2017. On the other hand, in the past few days we are seeing a timid and somehow protective US dollar, which might spread to the USD/CAD trading also. In that case, price could retreat to lower levels with first target at 1.3350.
EUR/USD is trading slightly lower today but still remains in the consolidation zone between 1.05 and 1.0390. Main trend remains bearish with current market price at 1.0435. Important events are scheduled until the end of the week that can cause some volatility in the last trading days of 2016.
EUR/USD reached 1.0373 yesterday and is up sharply to a high of 1.0479. The pair is currently trading at 1.0470 as it seems that US bulls will take a break until years end. Support rests at 1.04 while resistance is seen at 1.0515.
USD/CHF is trading lower after a few days of consolidation at its highest point above 1.0300. The pair reached a high of 1.0344 and immediately retreated to lower levels but still managed to hold above key 1.0300 level. A few days passed and price was struggling to keep the momentum.
A few times the US dollar gave in to bullish pressure going below 1.0300 but then again got back up above and has entered into consolidation that continues up to now. Main trend on the long-term remains bullish but with the decent sideways trading we might expect to reach below 1.0230.
If that happens, next bear target would be to go below 1.0100 and then parity again. On the other hand, bulls are on standby awaiting January when President-elect will be officially sworn as President of the United States. Given his powerful administration, market participants have high hopes for the future of the US equities and currency and these expectations may provide the next boost in the US dollar against its counterparts.
EUR/USD sharply up in today’s session due to a computer generated order that created a spike in the pair up to 1.0650. The pair is now 1.0560 in the last trading day of 2016.
An algo trade caused the Euro to spike against its rivals in the early midnight European hours. The single curreny rose to 1.0652 against the dollar due to a trade that was designed to take advantage of the low liquidity in the markets at that time.
As a result, the most effect was felt in Gold as safe haven which climbed to a high of $1,163, USD/CHF went below 1.0050 and Silver went to 16.25.
This is the second time an algo trade has caught investors by surprise, the first time being the Sterling flash crash on 7 Oct when the Pound dived 6.1% against the dollar.
This time it was a bit lighter, however, traders were hurt as their stops were taken out during the unexpected move.
It is yet to be investigated what exactly is behind that trade, presumably the reason is a computer generated order causing a reverse flash crash.
USD/CHF is showing strong bullish impulses that turned out to be very tough for the bears to beat. Last week the pair was impacted by the so called reverse flash crash in the euro. Then, the EUR/USD went to a high of 1.0650 and the USD/CHF slipped to 1.0050.
In light of this, right before the crash, the pair was trading at a double top which was a strong bearish signal indicating that a move to the downside is probable. The move came and the pair reached close to parity when out of nowhere the bulls stepped in and saved the day.
The pair has now recovered more than half of the decline from last week and is trading at 1.0220. If bulls manage to push the price above major resistance at 1.0330 we might see further appreciation of the US dollar.
We are just less than three weeks before Donald J Trump steps into office. This might result in high volatility in the markets due to the high expectations people have for Trump’s presidency and administration.
EUR/USD is trading lower today after the flash crash from last week took the pair to a high of 1.0650. Price is now 1.0481 and it appears that US dollar bulls are again ready to take control over the market.
The US dollar is making a strong comeback in the first week of trading for 2017. The US currency is up against all competitors, most significantly against the euro, japanese yen and swiss franc.
All three pairs registered a move in favor of the US dollar in the second trading day for 2017 with slightly boring first day of trading for the year. However, today the EUR/USD went below 1.04 again, when a few days earlier it reached 1.0650. The swiss franc reached 1.0050 and is now back just a few points shy of 1.0300. And the japanese yen is yet again depreciated with price above 118 for a dollar.
All this comes as President elect Trump is about to step into office with his just formed administration full of financial and technological experts that are expected to take the US economy into the next level with more jobs created, tax cuts, spending cuts, higher rates and all that good stuff.
All this can infact be very dangerous for the US economy as this actually sets the bar really high and thus it would be very difficult to meet those expectations.
Gold lost what was gained in the early trading hours of the session. The precious metal reached close to $1,160 and is now back below $1,150 as bears as showing their determination to keep price at lows until Trump gets elected.
The EUR/USD is trading slightly unchanged since yesterday’s levels. The pair continues to gravitate towards 1.04 level, currently 1.0403. Main trend on the long-term remains bearish. Volatility may remain low until Donald Trump officially steps into office.
USD/CHF continues its range bound trading in the early opening hours today. The pair went close to a parity last week when the flash crash took place and then climbed up again to reach a high of 1.0335 in yesterday’s session. The move is still not over as the stronger US dollar once again is flexing muscles.
Partially, the stronger dollar is the effect of Trump’s tweet yesterday that US manufacturers should contain their production within the borders of the United States or face high taxes. That caused Ford to cancel a $1.6B deal to manufacture in Mexico.
This move by Donald Trump was seen as a decisive and bold presidential act that got a lot of media attention. As it seems, Trump is already taking control over the economy a couple of weeks before he is officialy sworn as the President of the United States.
With this kind of determined and goal oriented measures, the President elect has a great chance to boost the US dollar into record breaking levels.
EUR/USD is up on release of FOMC minutes. The pair went to a high of 1.0562 on increased risk of higher pricing and uncertainty for higher inflation. Dollar is weaker as markets are unsure what the impact of current policy is going to be.
Gold is up with $13 overnight as dollar is trading weaker. US dollar is selling off over the last couple of days which caused the yellow metal to rally from $1,150 to a high of $1,177. Overall the long term outlook is very optimistic for the dollar with rising rates in 2017, Trump’s strong administration and this would cause headwinds for the greenbackand weak environment for Gold and metals overall.
That being said, the current depreciation of the dollar can be seen as a correction which helped Gold bugs to jump on in the trade to a 4 week high. EUR/USD is now at 1.0557, USD/JPY is at 116.18 and USD/CHF is gravitating towards 1.0167.
The correction is due to the release of the latest FOMC Minutes which sounded hawkish with increased risk on higher pricing and that drove market participants away from the dollar. But on Friday we get to know the latest NFP’s and jobless claims and that would definitely leave an impact on market conditions.
EUR/USD is trading relatively unchanged today as traders are waiting on the latest NFP and jobs report later today. The pair is now 1.0603. High volatility is expected in less than 3 hours.
Gold continues its climb towards the psychological $1,200 level as price has peaked over 4 week high at $1,184. The precious metal is now $1,178 as Gold bugs are ready to face the US data later today.
Silver has made considerable progress over the last few days going from a low of 15.61 to a high of 16.71. The asset, however, remains in bearish territory as Silver bulls must go through the resistance level at 16.70 or bears will take over again and push prices further down.
Silver reached a 2016 high in the beginning of July when price skyrocketed to 21.11 and then gradually started to wear off as the dollar gained strength. Expectations are for the US dollar to pick up the momentum and continue to appreciate.
Some experts even say that the move in the US dollar has not even started yet and that they expect a huge move to the upside around the time of inauguration of Donald Trump in less than two weeks.
If that is the case, then Silver along with Gold are poised to go lower. On the other hand, it takes just a spark to make precious metals go off to new highs.
EUR/USD traders remains cautious in the first day of the week as price keeps trading unchanged around 1.0540. On Friday the US dollar was benefited by positive US data and that drove the price of the pair down. Now bears seem to have an edge that would give them control over the pair for the short-term.