Euro, EUR/USD, US Dollar, GBP/USD, Euro CPI, NZD/USD, RBNZ – Talking Points
- Euro help halted its slide in opposition to the US Dollar at present
- Treasury yields resumed their upward march whereas the RBNZ tightened
- APAC equities softened after Wall Street carnage. Where to for EUR/USD?
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The Euro steadied at present after in a single day losses because the US Dollar eased in Asia at present, in step with Treasury yields after a stable uptick in each going into the North American shut.
The dollar posted positive aspects throughout the G-10 board except Sterling, which gained after huge beats throughout UK PMIs.
European CPI knowledge from a number of areas at present will present the final items of the puzzle earlier than the Euro-wide inflation gauge tomorrow.
So far at present the Aussie Dollar is the laggard in opposition to the ‘big dollar’ after the home Wage Price Index got here in beneath forecasts at 3.3% fairly than the three.5% anticipated.
The New Zealand Dollar has had a whippy day after the RBNZ delivered a 50 bp hike as broadly anticipated. The language within the post-decision presser was extra hawkish than anticipated as a result of a number of pure disasters disrupting the financial system this month.
Treasury yields added throughout the curve yesterday with the biggest upticks seen within the again finish of the curve earlier than they gave up a couple of foundation factors (bp) at present. The 2-year observe traded above 4.70% because it eyes the November peak of 4.88%, the best since 2007.
At the identical time that Treasury yields hover greater, gold continues to languish, buying and selling underneath US$ 1,840 an oz.
Crude oil has had a quiet day with the WTI futures contract close to US$ 76 bbl whereas the Brent contract is near US$ 83 bbl.
Wall Street tumbled in a single day on issues that the Fed price hikes is perhaps beginning to take their toll. APAC fairness indices are barely softer on the day and futures are indicating a gentle begin to the North American money session.
Looking forward, after the European CPI knowledge, the FOMC assembly minutes would be the focus.
The full financial calendar will be considered right here.
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How to Trade EUR/USD
EUR/USD TECHNICAL ANALYSIS
Overall, EUR/USD stays in an ascending channel. It has been in a 1.0613 -1.0805 vary for six weeks and these ranges could present help and resistance respectively.
The 21-and 34-day easy transferring averages (SMA) lie close to a breakpoint of 1.0770 and may provide resistance.
On the draw back, close by help may lie on the earlier lows at 1.0483 and 1.0443. The latter is being dissected by the 100- and 260-day SMAs and should lend help.
Chart created in Buying and sellingView
— Written by Daniel McCarthy, Strategist for DailyFX.com
Please contact Daniel by way of @DanMcCathyFX on Twitter