Forexlive Americas FX news wrap: Markets remain on edge as yield rise rotates into 5 yr – ForexLive

Forex news for North American trading on March 8, 2021

There is a lot of rotation continuing in the markets.  The rotation out of the Nasdaq and into anything else continues. The NASDAQ was down -2.41% while the Dow 30 was up 0.97%. If you look at Europe, the German Dax was up 3.31% to a record close. The other major indices were higher as well.   Out of the big cap tech and into anything else. 

US stocks are mixed with the NASDAQ index continue to take on the most heat

If you look at the debt market, the rotation saw the 5 year start to take the brunt of the selling with yields moving higher in that sector by 6.2 basis points (in the end of day snapshot). The 10 and 30 year yield also moved higher but at a slower pace (the 10 year was up 3.3 bp and the 30 year was up 2.6 bps).   

US interest rates on the 5 year yield rises the most

The forex market saw the USD move higher with the currency as the strongest of the majors today. The CHF was the weakest.  

The US dollar remains the strongest of the currencies

The North American session saw the EURUSD wander lower through the session and close near session lows The pair is getting closer to its 200 day MA at 1.18164. The low today reached 1.18446.  The 200 day MA is a key target for the traders. The price has not traded below the 200 day MA since May 28, 2020. 

The USDJPY moved to the highest level since June to 108.937. The pair trended along an upward sloping trendline which currently comes in at 108.76 on the hourly chart.  A move below that level is the minimum in the new trading day if the sellers are to have any hope off taking back control. The next target comes in at the 109.000 level followed by the swing high going back to April 2020 at 109.391 and the swing high from June 2020 at 109.843. 

The GBPUSD stayed in a confined trading range of about 67 pips today. The 22 day average is closer to 100. There was a a lot of up and down choppy in the North American session between the low for the day at 1.37997 (call it 1.3800) and 1.38566.

The USDCHF mimicked the EURUSD in marching higher in the favor of the USD. The pair traded above the 50% midpoint of the range down since the March 2020 high at 0.93281 and traded at the highest level going back to July 2020. Last week, the price moved above its 200 day moving average at 0.91267 and has traded higher in 6 the last 7 trading sessions and 9 of the last 11 trading days.

The USDCAD saw the price action move higher and back lower in the trading day. The North American session lows cracked below their 100 hour moving average at 1.26525, but found support just ahead of the 200 hour moving average 1.26332.  The price rebounded into the close and trades at 1.2666.  In the new trading day, the 100/200 hour MAs will be barometers for the buyers and sellers.  Right now, the buyers are in control above the moving averages.  If the price moves below it should solicit more selling.

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