Session close (Tuesday, March 6): Settled at 1.2414, up 78.5 ticks
Fundamentals: The euro put in a strong session today as optimism gathers behind Thursday’s ECB meeting and trade tariff news weighs on the U.S. dollar. Markets have shaken off the Italian election deadlock placing a strong focus on a coalition formed in Germany. The real news this evening is the resignation of President Trump’s top economic advisor Gary Cohn and the euro opened only slightly stronger. However, it did gain nearly a penny on Tuesday’ session. Eurozone GDP data is due tomorrow at 4:00 am CT. The private ADP job survey is due at 7:15 am CT. Atlanta Fed President Bostic speaks at 7:00 am CT and NY Fed President Dudley speaks at 7:20.
Technicals: Despite the lower low last week, the daily chart remains extremely constructive and in part because of the strength from Friday through today. Price action is facing a very strong two-star key resistance level head on at ... Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.
Session close: Settled at .9421, down 15 ticks
Fundamentals: After a solid session Tuesday, the yen reopened for Wednesday’s session up more than 0.5% on the news that Gary Cohn resigned. This creates yet another bullish scenario for the Yen along with increased volatility in equity markets. More domestically focused, GDP data is due out of Japan tomorrow and traders prepare for Thursday night’s Bank of Japan policy meeting. Foreign Reserves data is due out of Japan at 5:45 pm CT and Leading Index data is due at 11:00 pm CT.
Technicals: Price action settled right at the pivot level and despite the pullback from new swing highs, this is constructive.
Session close: Settled at .7818, up 57 ticks
Fundamentals: Risk-off has swept through markets on the reopen tonight after the Gary Cohn news. While this does not bode well for the U.S. dollar, it doesn’t either for risk-on currencies such as the Aussie. The Aussie had put in a strong session Tuesday and despite weak Retail Sales and the RBA leaving rates unchanged as expected, the currency traded well off U.S. dollar weakness. RBA Governor Lowe spoke late afternoon U.S. time and there are conflicting reports out of Australia; one negative and one upbeat. We see price action trading higher into the electronic close. GDP data is due tonight at 6:30 pm CT
Technicals: The new session weakness should leave traders on the sidelines until further clarity.
Session close: Settled at .77525, up 57 ticks
Fundamentals: The Canadian was able to grind out a rally today on Dollar weakness and Crude strength along with hope that a NAFTA deal will help the tariff talk. However, the Gary Cohn resignation quickly sparked a risk-off trade, and this coupled with a build in API Crude inventories has immediately sent the Canadian down nearly 0.5%. Tomorrow is a big day for the currency as Trade Balance and Labor Productivity data is due at 7:30 am CT. The big even though is the Bank of Canada monetary policy meeting at 9:00 am CT. Though we do not imagine anything near a hawkish tone, the sentiment is already so negative that we could see a short covering rally.
Technicals: Today’s settlement regained what is now major three-star resistance and reinvigorated hope in whatever shreds of a bull camp are left.