Bill Baruch, president and founder of Blue Line Futures, reviews and previews the euro, Japanese yen, Chinese yuan, Aussie and Canadian and the upcoming economic calendar. Follow his reports Monday-Friday on MoneyShow.com and short Midday Markets video.

Euro (December)

Session close: Settled at 1.1298, up 27 ticks.

Fundamentals: The euro (EUR) staged a bounce back as the U.S. dollar’s safe-haven demands dissipated amidst reports that the U.S and China have renewed early trade talks ahead of the G-20 Summit later this month.

Further tailwinds for the euro were seen from positive developments on the Brexit front and as support for Italy’s budget is  broadening. The British pound (GPB) surged at 10:30 am EDT on reports of both sides agreeing to terms of a deal, now it is up to British Prime Minister May to sell it.

As for Italy, they left all key points in their budget unchanged, but the euro has yet to react to what was seen to be as negative news. However, it has gained traction with the German Finance Minister. Regular monitoring and reporting might be a crucial aspect to getting the deal done. Talks on all fronts will continue to develop and can quickly become a headwind for the euro’s recovery.

Data from the Eurozone was underwhelming; German ZEW Sentiment barely beat a very low set bar and the Eurozone read missed widely. Wednesday is the most pivotal day of the week not only as budget and trade talks continue but because of U.S. CPI and Fed Chair Powell.

First, German GDP is due at 2:00 am EDT and French and Spanish CPI are at 2:45 and 3:00 am. Eurozone Employment, Industrial Production and the second look at Q2 GDP due at 5:00 am EDT.

U.S. CPI is at 8i:30 am EDT, Fed Governor Quarles begins a two-day semi-annual Congressional testimony on banking at 10:00 am EDT and Fed Chair Powell speaks at 6:00 pm EDT.

Technicals: The euro did stabilize today but it certainly does not mean that the coast is clear. Major three-star resistance comes in at ...

Yen (December)

Session close: Settled at .8805, down 0.5 a tick.

Fundamentals: The yen (JPY) rollercoaster session started with a sharp drop last night. Equity markets around the world stabilized on reports that U.S. Treasury Secretary Mnuchin and China’s Vice Premier Liu restarted trade talks on Friday and the latter will be visiting Washington in the coming days. Though the news reduced the dollar’s strength, it held back all safe-haven assets such as the yen. Buyers came back to the table at the onset of U.S. trading hours and as volatility picked up.

The yen traded in an unenthusiastic range of less than half a point. Tonight, GDP data from Japan is due at 6:50 pm EDT and is followed by Industrial Production, Fixed Asset Investment, Retail Sales and the Unemployment Rate from China at 9:00 pm EDT. Japan’s Industrial Production and Industry Activity data caps off the night at 11:30 pm EDT.

Technicals: The yen is attempting a bottoming pattern but today’s recovery failed shy of first key resistance at ....

Aussie (December)

Session close: Settled at .7206 up 15.

Fundamentals: Just about the only thing that could have saved such a negative technical picture Monday did; reports on the U.S and China renewing trade talks and laying the groundwork ahead of the summit within the summit; where President Trump and President Xi will meet at the G-20 Summit later this month. While global sentiment was questionable, commodity prices and specifically Crude Oil were hit.

Tonight, Wage Price Index is due from Australia at 6:30 pm EDT. China is Australia’s number one trade partner, Industrial Production, Fixed Asset Investment, Retail Sales and the Unemployment Rate from China is due at 10:00 pm EDT.

Technicals: Buoying yesterday’s weakness was also major three-star support at ... 

Canadian (December)

Session close: Settled at .75495 down 14 ticks.

Fundamentals: Four straight days in the red is much better than Crude Oil’s 12. The Crude complex and U.S. dollar strength has certainly pressured the Canadian lower. Traders want to keep an eye on overall risk-sentiment and continued positive developments with U.S. and China trade and a potential option expiration bounce from Crude Oil would provide a tailwind for the Canadian.

Ultimately, there is no data out of Canada Wednesday, that from China tonight and the U.S. Wednesday will be critical.

Technicals: The technical landscape certainly signals the bulls have their work cut out for them, however, ... 

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View a short video: Bill Baruch: Trading Futures. Gold, USD, yuan.
Recorded: TradersExpo Chicago July 24, 2018.
Duration: 4:34.