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Loose Lips Sink Ships and Boost EURUSD

Categories: AUD, CAD, EUR, GBP, Markets, News, USD

It is a bit of a headscratcher move. Yet, traders used the excuse that President Trump may have leaked classified information to Russia, to buy EURUSD.  The single currency climbed from 1.0975 to 1.1053 at the New York open.

It should be noted, as the New York Times reported, in an uncharacteristically balanced article on Trump, the President has the authority to declassify any information. Ergo, he didn’t leak classified information, therefor no problem.

EURUSD also received support from a solid German ZEW report and Q1 GDP data that confirmed 0.5% growth, q/q.

It was a big trading day for Sterling, thanks to a slew of economic reports. Traders drove GBPUSD higher in anticipation of a strong inflation report. They got it. April CPI rose 2.7% q/q. (forecast 2.6%)

Sterling spiked on the news and touched 1.2956 and then quickly dropped to 1.2870, erasing all the overnight gains.

USDJPY was very choppy, bouncing erratically inside a 113.26-113.78 range. It opened in New York at 113.56.  Traders were torn between US rate hike expectations and concerns about Trump’s leaking of classified data.

In Australia, AUDUSD bounced within a 0.7400-34 range.  Traders were focused on the release of the Reserve Bank of Australia policy meeting minutes which, not surprisingly, did not offer anything new.

NZDUSD trading tracked that of AUDUSD

Oil prices failed to extend yesterday’s gains and traded inside a tight $48.81-$49.31 range. Asia and European traders chose to ignore yesterday’s US Department of Energy forecast predicting a shale production increase of 122,00 barrel/day next month.

USDCAD consolidated yesterday’s losses inside a 1.3608-56 range, after breaking below key support at 1.3660. The combination of record, short CAD dollar speculative positions on the IMM and rising oil prices will keep USDCAD on the defensive.

Today’s US data includes; US Industrial Production data for April (forecast 0.3%), Building permits (forecast 1.27 million) and Housing Starts (forecast 1.26 million) Better than expected data should support the greenback.

Overnight Ranges

16-May-17 High Low
USDCAD 1.3646 1.3656 1.3608
EURUSD 1.1043 1.1049 1.0975
USDJPY 113.55 113.78 113.26
GBPUSD 1.2884 1.2956 1.2868
USDCHF 0.9915 0.9965 0.9906
AUDUSD 0.7408 0.7434 0.7400
NZDUSD 0.6874 0.6905 0.6866
USDMXN 18.7115 18.7152 18.6316
WTI   49.03 49.31 48.81
Close 4:00 pm EDT-Open 6:00 am EDT

USDCAD Technical outlook:

The intraday USDCAD technicals are bearish inside a descending channel bound by 1.3560 on the bottom and 1.3720 on the top. A break above 1.3720 will lead to 1.3850, while a move below 1.3560 will target 1.3530.  For today, USDCAD support is at 1.3600 and 1.3560.  Resistance is at 1.3660, 1.3690 and 1.3720

Today’s Range 1.3600-60

Chart: USDCAD 4 hour




Agility Forex Author: Agility Forex

Agility Forex is a Canadian cross-border payment specialist. They are Canadian owned, operated out of Vancouver and are registered with Fintrac, the Canadian government agency that oversees the money transfer industry. They specialize in all things Canadian Dollar and aim to provide the best service and best pricing on all Loonie cross rates. Visit Agility Forex.

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