Nasdaq now positive on the day. S&P unchanged.
The Nasdaq index is now retraced all of its earlier declines in trades up 8 points or 0.09% on the day. The S&P index moved back to unchanged (or close to it).
USDJPY given a boost
The US stocks opened lower with the NASDAQ index falling to a low price of 8943 and the S&P index falling to a low of 3214.64.
There is some hope for both buyers and sellers
The NZDUSD fell below a trend line and the 200 hour MA on Friday. That tilted the bias (at least in the shorter/intermediate term) to the downside. The move on Friday was able to extend below the 50% retracement at 0.66543, and test a swing low from December 26
Falls below a key swing area at 0.6921 as well
The AUDUSD has moved to new session lows and in the process took out last week’s low price and is moving away from the 50% retracement of the move up from the December 16 low. That level comes in at 0.69345. The pair is also dipped below a swing
Gold is higher. Stocks a lower. Yields are moving back to the downside
As geopolitical tensions increase, the US stock market is opening lower (but rebounding a bit in early trading). On Friday shares fell as well after the US killed Iran’s defense mastermind Soleimani. Stocks have the largest two day loss since early December.
Technical floor stops the fall. 100 day MA stops the moves higher
With geopolitical risk, typically there is a flight into the "relative safety of the JPY" (a Pavlovian reaction by traders). Last week we saw, the USDJPY move lower and indeed at the open today, the USDJPY moved lower on the back of the weekend saber rattling between the US/Iran. However, the price moved
Better PMI data helps to push the pair higher
The EURUSD has move higher in the European session helped by a weaker dollar and better PMI data.
The USD is weaker after better PMI data in Europe
Despite the saber rattling between the US and Iran (with Iraq also in the geopolitical picture), the markets are showing some safe haven flows but things are a little mixed up too. Gold is the biggest mover (up $24),along with crude oil (plus $0.63) and premarket for
GBP/USD touches a session high of 1.3121
Notably, price is moving away from the 200-hour MA (blue line) which has been a battleground between buyers and sellers over the past few sessions.
USD/JPY continues to hug the 108.00 handle in the European morning
helped the pair move up to 108.12 earlier but since then yields have come back down and the pair moves back towards the 108.00 handle again.