Session close (Tuesday, April 18): Settled at 1.2422, down 15.5 ticks
Fundamentals: Today was a win for the euro bulls. The currency started the session on its backfoot, topping at the European open before seeing bad Italian CPI and the worst German Sentiment data since 2012 which led to a poor read on Eurozone Sentiment. However, something interesting took place; U.S. Building Permits and Housing starts both beat and so did Industrial Production, but the U.S. dollar could not go higher. Additionally, comments from San Francisco Fed President Williams and the usually dovish Chicago Fed President Evans were not blatantly dovish. In the face of all this, the Euro pared much of its losses on the session and fundamentally speaking this is extremely impressive and points to further gains ahead. The big read tomorrow is Eurozone CPI at 4:00 a.m. Central. Outgoing NY Fed President Dudley speaks at 7:30 a.m. Central
Technicals: Today’s new swing high failed to hold, but on a positive note, the pullback did not trade lower than yesterday. Furthermore, today was the third session in a row with a higher low. Trendline resistance from the high now comes in at... Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.
Japanese Yen (June)
Session close: Settled at .93805, up 5 ticks
Fundamentals: President Trump hosts Japanese Prime Minister Abe in Florida and it should be on your radar to listen out for any developments here. In addition to a weaker Dollar we believe the Yen carried strength from yesterday’s twist that BoJ Deputy Wakatabe is not taking the expected ultra-dovish stance. In a forecast released earlier today, the Bank of Japan maintained its view that inflation will reach 2% next fiscal year. However, we maintain that inflation will surprise to the upside later this year. Trade Balance data is due at 6:50 pm CT.
Technicals: Price action faces a big hurdle at major three-star resistance.
Session close: Settled at .7769, down 12 ticks
Fundamentals: The RBA released the Minutes from their last Monetary Policy Meeting last evening. While the economy is growing faster than expected, weak wages and lagging inflation are a hurdle. However, a continued fall in unemployment should lift wages. Most importantly, they said the next move in interest rates is likely to be up rather than down. Still, though, they pointed to this being some time away. Employment data is due tomorrow night.
Technicals: The Aussie finished lower today though on the chart, and the session remained within the range of construction due to U.S Dollar weakness. Still, price action cannot get out above the major three-star resistance.
Session close: Settled at .7974, up 6.5 ticks
Fundamentals: Today was another green session as traders gear up for tomorrow’s Bank of Canada meeting at 9:00 a.m. Central. The technicals, discussed below, remain superb. While NAFTA and strong energy prices are very supportive, the economic data needs to agree in order to get the price really going. Manufacturing Sales did surprise to the upside today and this along with a weaker U.S dollar helped set a positive tone heading into the big data tomorrow.
Technicals: Today’s green close was not quite enough to confirm a bull flag breakout but it surely lays... Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.