Technical Analysis

The AUD is the strongest and the EUR is the weakest as NA traders enter for the day

The USD is mixed

As North American traders enter for the day, the AUDis the strongest.  The AUDUSD based off its 100 day MA and was able to crack back above the higher 200 hour MA at 0.6821 and the 100 hour MA at 0.68275.  The technical break gave the currency a boost higher.  The EUR is the weakest as the EURUSD cracked below its 100 hour MA after stalling against the level in the London morning session at 1.10796.  Its 100 day MA is a bit ower at 1.1062. 

Although the GBPUSD high to the trading range as is the AUDUSD and NZDUSD vs the 22 day averages, the EURUSD, USDJPY, USDCHF and USDCAD have trading ranges of 20 pips or less in the morning snapshot.  Their is room to roam in the NY session for each of those pair.  

The FOMC decision, UK election news, and any news on US/China will be the main events of the day. US’s Navarro said that China is trying to shape the trade news, but warns that if there is no deal, it is up to the President to decide on whether tariffs will be increased are not on December 15. He added that the decision will be announced soon (I guess relatively, December 15th is indeed soon. I would expect the announcement by Friday).  

The ranges and changes for the major currency pairs

In other markets:

  • spot gold is little changed at $1466.10. That is up $1.74 or 0.12%
  • The WTI crude oil futures are trading down $0.32 or -0.55% of $58.92

In the US stock market, the major indices are mixed/higher:

  • Dow, -3.73 points
  • S&P, +5 points
  • Nasdaq +22 points

In the European debt market:

  • German DAX, +0.4%
  • France’s CAC, unchanged
  • UK’s FTSE 100, unchanged
  • Spain’s Ibex, +0.6%
  • Italy’s FTSE MIB, +0.1%

In the US debt market, yields are marginally lower. The treasury will delay the reopening of the 30 year bond auction until tomorrow as a result of the FOMC decision today.The 3 year and 10 year auctions did not have any problem in the distribution on Monday and Tuesday.

US yields are trading marginally lower In the European debt market yields are also trending more to the downside. The benchmark 10 year yields are down from -1.5 basis points (UK) to down -3.3 basis points (Portugal).
European yields are also down on the day

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