Trading today's move in the Dollar
FX Rundown

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Euro (June)

Session close:Settled at 1.18755, down 96 ticks

Fundamentals:Data from Europe this morning fell short of expectations, but the real catalyst was the Dollars mission. First, German GDP, ZEW Sentiment and Eurozone Industrial Production all missed. U.S Retail Sales missed expectations as well, although last months read was revised better. A beat on NY Empire State Manufacturing gathered traction due to the increase in prices paid pointing to rising inflation. The combination of this data alone does not warrant the 1% swing in the Dollar Index nor the loss of a penny in the Euro. But, Mr. Market is never wrong and that is why we point to a pure mission in that the Dollar had unfinished business at higher levels. Dallas Fed President Kaplan said today that inflation is not running away and he was the second Fed official in as many days that made sure to mention the yield curve. San Francisco Fed President Williams said the Fed is due to hike three or four times this year and inflation data is showing last years weakness was temporary. Tomorrow morning, we look to German CPI at 1:00 am CT and Italian CPI at 3:00. The more crucial read of the trio is Eurozone CPI at 4:00 am CT, however, this is the second look at April. At 4:40 am CT, there is a German 10-year Bund auction. ECB President Draghi speaks at 7:00 am CT. From the U.S, Building Permits and Housing Starts are due at 7:30 am CT along with Atlanta Fed President Bostic. Also, at this time is ECB official Coeure, who surprisingly took a more dovish direction yesterday and sparked selling in the Euro; needless to say, his comments will be important. ECB official Praet speaks at 9:30 am.

Technicals:This was a bloodbath in the Euro today as it lost nearly two pennies from yesterdays high. Yesterday, we said that move below minor support at 1.19205 would accelerate selling and that is exactly what happened as the Euro traded to the lowest levels since November. Support does come in at ...Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.

Yen (June)

Session close:Settled at .9079, down 59 ticks

Fundamentals:The Yen fell to the lowest level since January as the Dollar surged on potential traction on the inflation front. With U.S treasury yields rising dramatically and not much from the Bank of Japan on winding down unprecedent stimulus levels we find the Yen in what has become a freefall. Tonight, brings GDP data from Japan at 6:50 pm CT.

Technicals:After a series of lower highs and a failure to hold the double bottom bounce, we completely Neutralized our Bias ahead of today. The path of least resistance points...Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.

Aussie (June)

Session close:Settled at .7471, down 56 ticks

Fundamentals:The RBA Minutes last night did not bring anything new, the members agreed that the next move in rates is more likely higher than lower but favor keeping rates steady for some time. Last nights data out of China was mixed with Industrial Production beating and Fixed Asset Investment missing. This news was all neutral for the Aussie, but even if bullish it was unlikely to matter as the morning arrived and the U.S Dollar turned sharply higher on a mission to leave U.S Dollar bears in the dust. Westpac Consumer Sentiment is due at 7:30 pm CT. Wage Price Index is due at 8:30 pm CT.

Technicals:Price action is now below the key .7470-.7501 level and this, as we described yesterday, places the bears ...Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.

Canadian (June)

Session close:Settled at .77765 down 41 ticks

Fundamentals:The Canadian turned sharply lower as did all other currencies against the U.S Dollar. However, as energy prices remained strong, the Canadian was able to hold ground and recovery slightly as the day unfolded. Favorable comments from President Trudeau saying that a NAFTA agreement is reachable likely helped the Canadian. However, doing so came just after the Mexico used a different rhetoric. Trudeaus comments are likely an attempt to put pressure on the U.S to come to the table. Manufacturing Sales is due tomorrow at 7:30 am CT and Bank of Canada Council Member Schembri speaks at 11:00.

Technicals:The sharp move lower does elude to further weakness. We are not Bearish the Canadian but instead would be patient for a move to ...Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.
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Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.