The USD is also stronger on flows into the relative safety of the US dollar and JPY
As the North American session, the JPY is the strongest and the NZD is the weakest. The USD is mostly stronger as flows head into the relative safety of the JPY and the USD. Europe is imposing more travel restrictions as a result of an increase in Covid cases. Technical breaks seem to also be in play. The AUDUSD and NZDUSD are trending lower on the day (little in the way of corrective moves all day). Both fell from converged 100/200 hour MAs overhead resistance tests seen yesterday. Treasury yields are lower on the safety flow theme. The Fed Chair and Treasury Sec. Yellen will testify today and tomorrow on Capitol Hill. Powell’s prepared text (released yesterday), reiterated comments from the chair after the rate decision last week.
The ranges and changes show good low to high trading ranges and the move higher in the USD. The pairs are mostly off the extremes in the morning snapshot, but is a dollar high levels vs the EUR and CHF. The NZDUSD is down -117 pips with an oversized trading range as well.
In other markets:
- Spot gold is trading unchanged on the day at $1738.85
- Spot silver is down -$0.20 or -0.82% at $25.54
- WTI crude oil futures are trading sharply lower by -$2.43 or -4% as concerns about less global demand during the summer are weighing on the price. The May contract is trading at $59.17
- The price of bitcoin is trading up $407 or 0.75% at $54,969
In the US stock market, the markets are mixed with the Dow industrial average down modestly, the S&P index also lower modestly and the NASDAQ index modestly higher. Yesterday, the rose by 162 points or 1.23%. The S&P index rose by 0.7%. The Dow industrial average rose by 0.32%
- Dow down by -110 points
- S&P down -11 points
- The Nasdaq up 10 points
IN the European equity markets, the major indices are mostly lower
- German DAX, unchanged
- France’s CAC, -0.34%
- UK’s FTSE 100, -0.22%
- Spain’s Ibex, +0.4%
- Italy’s FTSE MIB, -0.6%
In the US debt market, yields are lower for the second consecutive day. The 10 and 30 year issues down by 3-4 basis points.
In the European debt market, the benchmark 10 year yields are also lower across the board