FX Volatility Focused on Weak USD As JPY Firms; EUR Pushes To 1.2000
FX Closing Bell is a daily webinar hosted by Tyler Yell, CMT with the intent to look at key market themes within Foreign Exchange, Commodities, and Fixed Income. We look at the current price action in these key markets alongside any news that may be making waves in the markets or could lead to a pending opportunity that I feel deserves your attention.
To get a sense of where capital is flowing, we pull on insights from futures, spreads on the yield curve, and options. Looking at how multiple markets are pricing in future activity can help us understand where the pressure is building. We also touch upon the technical analysis and sentiment analysis to give you a well-rounded view of what is happening in markets that could lead to your next trade as we hope to make it a good one.
Discussions include –
- Crude Oil breaks down after Hurrican Harvey expected to cut demand for Oil by refiners, which are located in the path of the hurricane’s damage.
- 5Yr US Treasury Auction left Wall St. with lowest take home from the auction as Indirect bids, and bid-to-cover ratio shows investors are happy with the yield as is.
- US Dollar closes at lowest level since early January 2015 and pushes below the 200-WMA for the first time since summer of 2014. Surprisingly, a hiking Fed may do little to reverse USD downtrend.
- The important technical levels facing Crude Oil and USD as they continue to fall.
- Sentiment focus on US Oil retail long positions that have seen a ~65% rise in net-long positions from last week.
Special note: While not covered in the webinar, reports came out late Monday by Japan that North Korea fired missiles that passed over Japan and are expected to kick off the risk off trade. Typically, this type of news would favor further strength in Gold, which closed above $1,300 on Monday for the first time in 2017. Additionally, JPY could test the strongest levels of the year against USD, which currently has a YTD extreme of 108.13.
If you missed this webinar and would like to know about future events, including the next scheduled FX Closing Bell webinar, you’ll find that all here.
Written by Tyler Yell, CMT, Currency Analyst
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