The USD started the US session and ended the NY session as the strongest of the major currencies. The JPY was also a stronger currency today. The NZD, AUD and CAD (commodity currencies) were the weakest. This combination of strong and weak is typical of a “flight to safety” and / or risk-free flight.
The decline in the stock market ahead of Wednesday’s FOMC decision, when the Federal Reserve is expected to step up the cut and likely anticipate faster tightening as well, as well as concerns about the acceleration of the omicron virus and its economic impact, contributed to the flow. .
Below is a chart from the strongest to the weakest currencies. The USDCAD and NZDUSD were the main drivers with movements of 0.68% in favor of the greenback.
US stocks traded higher for most trades before the market opened, but at the open, stocks were slightly lower. The Nasdaq Index was the only index of the top three, trading in positive territory, and even that, the gains were modest at 6.5 points. The S&P hit an intraday high of -1.72 points. The Dow high was -12.06 points. At lows, the Dow Jones was down -361.46 points or -1.0%. The S&P Index was down -44.42 points or -0.94%, and the NASDAQ was down -222.40 points or -1.42%. The S&P Index and the NASDAQ Index closed just after their daily lows.
In Europe today, the major indices all closed lower, with the German Dax outperforming at a largely unchanged level. Britain’s FTSE 100 fell 0.83% is a fight against the omicron virus.
In other markets today:
- Spot gold rose € 4.60 or + 0.26% to $ 1,787
- Cash increased $ 0.16 or 0.73% $ 22.31
- WTI crude oil futures are trading at $ 71.20. The settlement price today was $ 71.29. There was a decrease of $ 0.38 -0.53% from Friday’s settlement price.
- Bitcoin is trading at $ 46,507. Today’s high price has stalled from its 200-hour moving average, giving bears more control (see post here)
Some technical levels to watch out for in the new trading day:
- EURUSD: EURUSD has 100 and 200 hour moving averages at the same level at 1.1299. The New York session price peeked above the moving averages, but quickly came back down. Price was trading near 1.12837 near the close of the day. The trade bias is down below the moving averages. Targets include 1.12658, today’s low of 1.12595. Move above the 100 and 200 hour moving averages, then break above 50% of the range from the 30th at 1.13044, and the door opens for further bullish momentum.
- USDJPY: The USDJPY traded in a narrow trading range with resistance against an upper trendline currently crossing 113.66 and support against the 200 hour moving average (at 113.373). These levels will be seen over the new trading day for bias indices, with expected momentum in the direction of the breakout.
- GBPUSD: GBPUSD tried again to break above the 200 hour moving average today. Recall that on Friday, the price exceeded this level for the first time since November 22, to fall below during today’s Asian session. The rebound above that 200 hour moving average (currently at 1.32484) at the end of the London trading session / start of New York also failed. This led to a break below its 100 hour moving average of 1.32259 and swing support at 1.32201. The current price is trading at 1.3208. It would take a return above the 100 hour moving average to reverse the bias in favor of buyers. Absent this, sellers will see Friday’s low at 1.3186, Thursday’s trade low at 1.31698, and Wednesday’s trade low (and the lowest since December 2020) at 1.31588.