Forexlive Americas FX news wrap: Another vote defeat by PM May

Forex news for NY trading on March 29, 2019

In other markets:

  • Spot gold +$2.05 or 0.16% at $1292.47. The high reached $1300.10. The low extended to $1286.79
  • WTI crude oil futures is trading up $.88 or 1.48% at $60.18

In the US stock market today, the major indices moved higher helped by hopes for US/China deal. 

  • S&P index rose 18.96 points or 0.67% at 2834.40. The high reached 2835.40. The low extended to 2819.23
  • Nasdaq index rose 60.15 points or 0.78% at 7729.32.  The high reached 7733.625. The low extended to 7688.512
  • Dow industrial average rose 211.22 points or 0.82% at 25928.68.  The high reached 25926.26. The low extended to 25771.67

For the month, the major indices closed with modest gains

  • S&P index rose 1.79%
  • NASDAQ index rose 2.61%
  • Dow industrial average rose 0.05%

For the quarter, the gains were stellar with the:

  • S&P index +13.07%
  • NASDAQ index +16.49%
  • Dow industrial average +11.15%

In the US debt market today, the shorter end of the curve rose while the longer end had less gains (or moved lower). 

In the forex market today, the snapshot of the strongest and weakest is showing the CAD is the strongest while the JPY and GBP are the weakest.
For the CAD, the loonie benefitted from better GDP and producer price data.  GDP rose by 0.3% vs 0.0%. The industrial product prices rose by 0.3% , while raw materials prices increased by 4.6% after a 4% gain in the prior month.  That helped to send the USDCAD down from 1.3424 to a low of 1.33408.  In the process, the pair moved back below its 200 hour MA at 1.33807. In the new week ahead, if that 200 hour MA is not broken to the upside, the sellers remain in control, with the 100 day MA at 1.33098 a key target on the downside next week.  

The GBP remains under pressure today as the withdrawal agreement vote (PM May’s latest attempt to come to an agreement) was voted down by a vote of 286 for to 344 against. The net result, is the Article 50 date will be April 12th instead of May 22.  There is still time to avoid a no-deal Brexit, but if a deal can’t be made by now, why should it change. The price action did see the price tumble froma about 1.3055 to a low of 1.2976. The one potentially bullish development is that at the low, the pair tested the 200 day MA at 1.2978, and bounced.  However the correction was modest (less than 50% of the day’s trading range.  So sellers remain in control. In the new week, a move below the 200 day MA would be more bearish.    

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