The USD ends the day in a race for weakest of the major currencies with the EUR (the EUR just overtook the USD for the weakest distinction). However, the greenback is also well off its lows after a slight slowdown in U.S. stock selling and the arrival of bearish buyers.
From strongest to weakest major currency
Price action was helped during the European session and early in the US session by lower yields. Yields remained down as the day closed, but the foreign exchange market began to ignore them and recover. The return to the downside of EURUSD (higher USD) has been particularly subject to upward and downward volatility. At the heights of the session. EURUSD reached 1.0884 and traded above the 100-day moving average at 1.0871. With one hour remaining in the trading day, the pair was down at 1.0847 and trading at new lows for the day.
USDJPY also reacted negatively to the decline in U.S. stocks earlier in the day, falling to the 200 hourly moving average at 151.55 after hitting a high of 151.91 during the European session. The price is currently trading at 151.75, near the middle of the range.
Even pairs like AUDUSD and NZDUSD, which ended the day as the strongest of the major currencies, were lower (USD higher) during the US session but remained above closing levels. previous days.
Some of the volatility could be the result of CPI data being released tomorrow at 8:30 a.m. ET. The RBNZ will announce its rate decision during the new trading day (10 p.m. ET), and this may have been a catalyst for volatility and upward movement in this pair as traders position themselves (or compete ) for the decision.
US stocks were volatile and technical levels (like the USDJPY 200 hourly moving average) were also in play and had an influence on some dollar movements today. For currency pairs like EURUSD, they will announce their rate decision on Thursday and are trading at the highest level since March 21, which may have scared (and encouraged) some traders into taking profits. The pair also tested the 61.8 March trading range at session highs, which gave traders a technical reason to relax.
As for the US Treasury market, yields remained lower on the day despite a botched three-year bond sell-off (+2.0 basis points and BTC well below average on 6 months). Ultimately, a snapshot of the US yield curve shows:
- 2-year yield 4.744%, -4.4 basis points
- 5-year yield 4.377%, -5.7 basis points
- Yield at 10 years 4.365% -5.8 points each
- Yield at 30 years 4.498%, -5.5 basis points
The US Treasury will auction 30-year bonds on Thursday.
In the US stock market, phone numbers show:
- Dow industrial average minus 9.13.0 or -0.02% to 38883.68
- S&P index +7.54 points or +0.14% to 5209.92
- NASDAQ +52.68 points or 0.32% to 16306.64
in other markets:
- Crude oil is trading lower at $85.32, down $1.11 or -1.28%
- Gold continues its upward movement with a gain of $13.70 or 0.59% to $2,352.40. Intraday high reached $2,365.30 (a new intraday high)
- Bitcoin has been trading above and below 70,000, but is currently trading at $68,959. High price reached 71,007 or 48 hours before turning lower
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