Session close (Monday, April 23): Settled at 1.23885
Fundamentals: Weak European data this week finally took its toll on the euro after a stronger than expected Philly Fed number was digested by both the euro and the dollar. The euro finished lower in a more or less quiet but technical session. On the other side of the coin, weekly Jobless Claims missed for the third week in a row and fourth out of five. Fed Governors Brainard and Quarles focused more on regulation instead of monetary policy. We look to Cleveland Fed President Mester who speaks tonight at 5:45 pm CT. German PPI data is due at 1:00 am CT tomorrow. German Bundesbank President Weidmann speaks at 6:30 am CT. Chicago Fed President Evans speaks at 8:40 am CT. Eurozone Consumer Confidence is due at 9:00 am CT. San Francisco Fed President Williams speaks at 10:15 am CT.
Technicals: Today’s high of 1.24525 was short of minor 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 .93445
Fundamentals: The yen lost further ground on the week as the dollar firmed. The discussion of stabilized to rising inflation in Japan and the timing of tightening monetary policy has gained tremendous traction this year and in recent weeks. CPI data is due out of Japan tonight at 6:30 pm CT and will set a tone for the currency to finish the week. At the end of today’s equity session news broke that the Mueller probe is not targeting Trump. If equity markets benefit from this news tomorrow it will likely weigh on the yen ahead of the weekend.
Technicals: Price action is back down against major three-star support.
Session close: Settled at .7725
Fundamentals: The Aussie gave traders a serious case of whiplash overnight as it sold off sharply upon a poor Employment Change release. Not only did the data show a gain of 4.9k jobs which was less than the 20.3k expected but last month’s 17.5k was revised down to a loss of 6.3k. While the Unemployment Rate stayed steady, the Participation Rate Dropped. Rightfully so, the currency sold off. However, it then ripped higher to take out last Friday’s high and trade to the highest level since March 15th before failing and trading to the lowest level since April 10th. As we said, a serious whiplash, hitting stops on all sides of the trade. Strong commodities prices have helped the Aussie a great deal in recent days and weeks and this contributed to the overnight bounce. However, today’s close is very weak and bulls are best to hit the sidelines.
Technicals: We made sure to clearly take our Bias Neutral yesterday as we mentioned several technical reasons as well as the impending employment news. Today’s outside bearish reversal places the bears clearly.
Session close: Settled at .79005
Fundamentals: After a solid bounce into this morning from yesterday’s weakness, the Canadian gave way despite a solid ADP Payroll read. Crude oil finished more than $1 from its session high and the U.S. dollar firmed up a bit on stronger than expected Philly Fed. However, this failure opens the door to a further downside. Tomorrow will be as crucial as they come for the Canadian with CPI and Retail Sales due at 7:30 am CT.
Technicals: The Canadian reversed sharply from its morning high and settled below our line in the sand major three-star support.