North American traders enter for the week
As North American enter for the week, the AUD and NZD are rebounding after taking it on the chin last week. This despite more deaths and a jump in the infected in China. the PBOC did cut rates, and added liquidity and are looking to minimize the damage from the coronavirus (see Eamonn post here). The current number are showing 17,400 infected with the number of deaths at 362, up from Feb 1st numbers showing 14,380 infected and 304 dead.
The GBP is running to the downside as the EU/UK trade deal rhetoric is getting off to a rocky start. The process of getting "half the distance to the goal" is underway. Will they complete it by the end of the year? The GBP is down near 1% vs all the majors with the fall of -1.27% vs the AUD leading the way . The smallest change was vs the EUR at -0.87%. It is down -1.11% vs the greenback.
The ranges and changes are showing big moves vs all the GBP pairs. All are above their 22 day averages (about a month of trading). The GBPAUD has tumbled -250 basis points. The other changes versus the US dollar show minimal movement to start the trading week, with the major currency pairs trading with ranges of less than 38 pips.
In other markets, as North American traders enter for week are showing risk on flows:
- Spot gold is down $10.29 or -0.65% at $1578.82
- WTI crude oil futures are down $0.14 or -0.27% at $51.42. This despite gender from OPEC that they may look to cut production further.
In the premarket for US equities, the futures markets are implying a rebound from Friday's sharp falls (S&P -1.77%, Dow -2.09% and NASDAQ down -1.59% on Friday).
- Dow industrial average up 130 points
- S&P up 17 points
- NASDAQ up 54 points
In the European debt market:
- German DAX +0.2%
- France's CAC, +0.34%
- UK's FTSE 100, +0.5%
- Spain's Ibex, +0.1%
- Italy's FTSE MIB +0.6%
In the US debt market yields have also recovered with the 10 year up 4 basis points as flight to safety of treasuries sees some reprieve:
In the European debt market yields are also moderately higher. The PMI data this morning came out about as expected but still showed contraction in the manufacturing sector.
