EmailBond Market Update
The market at 14:57 ET
| 10-Year: +04/32....%.... GNMAs: .... USD/JPY: 79.53.... EUR/USD: 1.2321 |
Moving the Market
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Michigan Sentiment: Actual 73.6, consensus 72.2, prior 72.3 Leading Indicators: Actual 0.4%, consensus 0.2%, prior -0.3% (revised -0.4%) |
Dollar Drifts in Tight Range
17-Aug-12 14:57 ET
10-Yr: +04/32..1.816%..
USD/JPY: 79.53..
EUR/USD: 1.2321
Lull: The Dollar Index has settled into an afternoon lull as trade drifts near 82.60. EURUSD is -40 pips at 1.2315 after some early morning selling pressure dropped the single currency off its flat line. The euro fell to a session low of 1.2290 before buyers emerged ran trade back above the 1.2300 support level. Earlier comments from German Chancellor Angela Merkel failed to move the currency as she suggested she remains committed to the common currency. GBPUSD is -45 pips at 1.5690 with today’s selling pushing sterling back below its 200-day moving average. Traders continue to monitor developments as action holds at the upper end of the range that has been in place since early June. Britain’s Rightmove Home Price Index is due out Sunday evening. USDCHF is +25 pips at .9745 as trade has been stuck in a tight 60 pip range for the past week. Support provided by the pair’s 50-day moving average (.9700) and overhead resistance near .9760 have provided the bookends as neither bulls nor bears have been able to garner control. USDJPY is +20 pips at 79.55 and is trading on its best levels of the session. The recent five-day winning streak has the pair trading at its best level in over a month with trade now testing 79.50 resistance. The 80.50 area is setting up as a key level and should be watched carefully on a test. AUDUSD is -90 pips at 1.0420 as action holds just above the session lows. The hard currency has rolled over this week after being unable to break through the 1.0600 level, and now has traders eyeing 1.0250/1.0300 support. The 50-day moving average is on the verge of a ‘golden cross’ over the 200-day, and will be watched closely over the coming days.
USDCAD is +25 pips at .9890 as trade attempts to form a bottom near the May lows. Selling over the past two and a half months has the pair down close to 500 pips as nine of the past eleven days have resulted in losses. USDCAD has been a fairly good indicator for broader U.S. dollar moves; so if a bottom is able to form, be on the lookout for U.S. dollar strength.
