Daily forex rundown: Euro, yen, Aussie & CAD

Euro (March)

Session close (Thursday, Jan. 4): Gained about half a penny

Fundamentals: The U.S. dollar continues to freefall despite a much stronger than expected ADP Payroll read and Services PMI. However, Jobless Claims missed for the third week in a row. St. Louis Fed President James Bullard said today that the tax legislation has boosted growth and equity prices but should not encourage the Fed to move faster. Regional PMI data out of Europe was choppy but the Eurozone reads both beat by a tenth, anchored by a strong Germany. This week boils down to Nonfarm Payroll tomorrow at 7:30 am CT but still Eurozone CPI at 4:00 am CT and U.S ISM Non-Manufacturing at 9:00 am CT should not be overlooked. We will be watching the Average Hourly Earnings read most closely and given that job creation will be solid. 

Technicals: Price action extended to a high of 1.2155, just shy of our rare major four-star resistance at... Please sign up for a Free Trial to view our entire technical outlook and proprietary bias and levels.


Yen (March)

Session close: Lost about 17 ticks on the session

Fundamentals: The yen is the only major currency that has not capitalized off the weaker Dollar. Price action is being suppressed due to rising Treasury yields and strong growth data from around the world. Remember, the yen is a safe haven currency. However, the gold phenomena is alive and well. BoJ Kuroda has done a superb job in keeping the yen bulls at bay. Still, we believe the yen has tremendous long-term value down here and if the dollar continues to sell off it will have no choice but to wake up. Of course, Friday's Nonfarm Payroll Report will be key for this trade. 

Technicals: A bad day for yen bulls as the tape extended its two-day losing streak. Price action is testing first key support at... Please sign up for a Free Trial to view our entire technical outlook and proprietary bias and levels.


Aussie (March)

Session close: Gained a quarter on the session

Fundamentals: The Aussie continues its surge, 15 positive session out of 17. Data from China has been consistently good this week and this along with higher commodity prices has been a major catalyst for this leg higher. We finally have some significant data out of Australia tonight with a read on Trade Balance at 6:30 pm CT. As we head into tomorrow, the trade will be at the mercy of U.S jobs data and the Dollar.

Technicals: There is no question that the Aussie is overbought, still, it continues its surge higher. We have had major three-star resistance overhead at... Please sign up for a Free Trial to view our entire technical outlook and proprietary bias and levels.
 

Canadian (March)

Session close: Gained about 30 ticks on the session

Fundamentals: The Canadian put in a strong session today after a monster Raw Materials Purchase Index read. With strong energy and metals prices, inflation is starting to poke its head and the commodity currencies, the Aussie and Canadian, are capitalizing in full force. Tomorrow, not only brings key jobs data from the United States but also Canada at 7:30 am CT. The currency looks to continue a strong run of data on the heels of its bullish breakout last week.

Technicals: Price action pushed higher today and because of lower price action from yesterday’s close and into today it has created a bull flag... Please sign up for a Free Trial to view our entire technical outlook and proprietary bias and levels.