Forex new for North American trading on June 8, 2021.
The markets were reluctant to make any huge moves today. Looking at the major currencies verse the US dollar, the ranges overall are ending the day well below what is normal over the last month of trading.
- The GBPUSD had a range that was 70% of normal.
- The EURUSD had a range (30 pips) which is less than half of what is normal (normal is 64 pips over the last 22 trading days).
- The EURUSD, USDCHF, AUDUSD and USDJPY all had ranges of less than 39 pips for the day.
- For the EURUSD and the USDJPY, the range at the start of the trading day (30 and 36 pips) was the same as at the end of day.
- The AUDUSD only extended its range by 3 pips (from 29 to 32 pips) during the NY session.
There just wasn’t much interest in pushing one way or the other.
Overall, the CHF is ending the session as the strongest of the majors followed by the USD. THe NZD is the weakest with the CAD lagging behind it. When the CHFNZD is the biggest % mover at 0.54%, it says a lot about what type of day it was. In a word….”BORING”.
Fundamentally, the US trade deficit came out little bit better than expectations although overall the deficit remains nearer higher levels. Exports increased 1.1% but imports fell by -1.4%.
Strong JOLTS job data came out later in the morning with job openings surging to 9.268 million (vs 8.2M estimate). That is the good news/bad news in the US jobs market. There seem to be pointing jobs, but not enough workers as the economy adjusts to the reopening. About 50% of US states are looking to and the $300 week unemployment benefit in an effort to spur workers to return to the workforce. Employers are already looking to attract more workers by raising wages. There is a job for every worker looking for a job. It is a matter of matching one to the other.
In other markets today:
- Spot golds is trading down -$.591 or -0.31% at $1893.28. The high price did extend back above $1900 to $1903.80, but could not sustain momentum
- WTI crude oil settled and is trading after hours above the $70 level. The currrent price is trading at $70.03
In the US stock market, the major indices are closing with mixed results.
- The S&P index is closing higher by 0.74 points or 0.02% at 4227.26. That was about 5 or so points from its all time high close at 4232.60.
- Nasdaq index closed by 43.19 points or 0.31% at 13924.91.
- The Dow is ending down 0 30.42 points or -0.09% at 24599.83.
In the USD debt market, the yields are lower but also off the lows for the day. Below is a summary of the low to high yield levels today. The 10 year led the way with a decline of -3.4 basis points. Today the US treasury successfully auctioned off $58 billion of three year notes near the WI level. Tomorrow the treasury will auction off 10 year notes and on Thursday, 30 year bonds will be auctioned to end this week’s cycle of debt issuance.
The Bank of Canada rate decision will take place tomorrow at 10 AM ET. The US CPI will be released at 8:30 AM ET on Thursday.
Will there be enough price action to shake the major pairs outside it’s narrow price ranges today? Often times, it is a surprise /unexpected thing that does it. What that might be, time will tell.