Session close (Monday, March 26): Settled at 1.2534, up 87.5 ticks
Fundamentals: This was a monster session for the Euro gaining almost a penny. The move started early this morning when French GDP beat expectations and picked up further steam on hawkish comments from German Bundesbank President Weidmann. He said that it is “not unrealistic” to see rates rise in the middle of 2019. These are only minor details in a market that finished last week on strong footing. In yesterday’s Tradable Events this week, a centerpiece of our discussion was the dollar. Please read the Tradable Events this Week by clicking here. Cleveland Fed President Mester speaks at 3:30 p.m. Central. Fed Governor Quarles speaks at 6:10 pm Central. Tomorrow we look to German Import Price Index at 1:00 a.m. Central, Spanish CPI at 2:00 a.m., Eurozone Consumer Confidence and Business Climate at 4:00 am. Out of the United States is Case Shiller at 8:00 a.m. Central and Consumer Confidence at 9:00. Atlanta Fed President Bostic speaks at 10:00 a.m. Central.
Technicals: Today was a bullish trend line breakout for the euro and it cleared a very strong first key resistance 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 .95575, down 38 ticks
Fundamentals: The yen took a bath today after crossing the .9600 mark on Friday for the first time since November 2016. The dollar was surely not culprit today as the yen was the only currency to truly lose ground against it. Today’s catalyst was the risk-on environment and after traders piled into the yen ahead of the weekend when the S&P lost 5.7% on the week, this trend simply revered. If the trend in the dollar remains weak, which we strongly believe it will, the yen will ultimately be buoyed. Corporate Services Price Index is at 6:50 p.m. Central and BoJ Core CPI is at midnight.
Technicals: The Yen confirmed a breakout on Friday, but this uptrend has been a slow steady grind since February’s surge and this breakout is likely to be no different. We remain Bullish in Bias, but volatility will continue. Major three-star support does not come in until ... Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.
Aussie dollar (June)
Session close: Settled at .7737, up 20 ticks
Fundamentals: Risk-on! The Aussie got the memo this morning and put in a solid session when it was on the brink of a new multi-month low. Sunday night started off on solid footing as the Aussie followed the New Zealand Dollar higher on good Trade Balance data. What really got things going was the dissipated trade war fears on comments from both Treasury Secretary Mnuchin and out of China. This is big for the Aussie as China is their number one trade partner and the Aussie at times can be a barometer of prospects for the state of the Chinese economy. Home Sales data is due at 7:00 p.m. Central tonight and Assistant Governor Kent speaks at 7:45 p.m. Central.
Technicals: Today’s price action was constructive, but the Aussie faces tremendous headwind with major three-star resistance at ... Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.
Canadian dollar (June)
Session close: Settled at .77835, down 3 ticks
Fundamentals: The Canadian has been a beneficiary of strength in crude oil, a weaker U.S. dollar and upbeat jawboning on NAFTA. Still, dismal data has been a headwind and traders are eyeing Thursday’s read on GDP. Until then, it will remain susceptible to crude, the U.S Dollar and whether the equity market is in a risk-off or risk-on phase.
Technicals: We began to take a more Bullish stance in the Canadian last week and though we remain upbeat, today’s failure to follow through signals that we must manage risk a bit. Price action is holding at and just above major three-star resistance at... Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.