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Forex Trading: New York Market Summary

Posted by Joseph Trevisani on May 2, 2013 4:27:00 PM


Dollar/yen traded at 97.39 on the New York open (8:00 am ET) and raced through resistance levels at 97.50 and 98.00 on euro/yen buying and a better than expected US trade balance and lower initial jobless claims at 8:30 am. The high at 98.39 was in line with the 21 day moving average (98.40) and came at 8:38 am. 

Euro-yen moved from 127.66 to 129.91 on model account buying but reversed quickly on Draghi's dovish press conference statements which forced dollar-yen back from its highs to a low of 97.60 by 9:30 am. As euro/usd bounced off its low and the cross recovered that supported dollar/yen to 98.15 where it then consolidated at 97.90-98.10 for most of the afternoon.


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ScreenHunter 1058 May. 02 17.55


Euro-dollar opened the US session at 1.3195 (8:00 am ET) after a quick move down and up following the ECB 25 basis point rate cut announcement at 7:45 am ET. It traded down to 1.3122 where large euro/yen buying quickly brought it back to the session high of 1.3218. Sales from sovereign accounts had corrected back to 1.3158 when Draghi announced that ECB had an open mind concerning negative interest rates and they were ready to act if data warranted it. The euro was aggressively sold from 1.3176 to 1.3066 on the comment, losing 75 points in  five minutes. Buying interest around the 10 day (1.3069) and 21 day  (1.3067) moving averages and short covering produced rally to 1.3096 where negative sentiment reasserted and the euro drifted back lower to 1.3080 and then to 1.3060. A Market News International report that many ECB council members were ready for a  bolder rate move prompted  another shift lower to 1.3037 just above the 55 day moving average at 1.3036 where short covering rallied the euro back 1.3070. The majority of the afternoon was spent  in a 1.3055/75 range.


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Market News International & WorldWideMarkets


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