The USD is mixed
The risk on flows continue in the forex market as the AUD is the strongest (it was the strongest yesterday too) and the CHF is the weakest (flight out of the safety of that currency). The JPY is also weaker. The USD is mixed with gains vs the EUR, JPY and CHF and declines vs the AUD, GBP (and near unchanged vs the CAD and NZD). Traders are cheering a potential cure for the coronavirus. Pres. Trump gave his State of Union address and cheered the economy of the US.
The USDCHF is trading near the highs (higher USD/lower CHF) while the AUDUSD is also near the high (lower dollar/higher AUD). The EURUSD is near the lows for the day. The NZDUSD and USDCAD are near unchanged on the day in up and down trading for those pairs. On a relative basis, ranges are ok with USDPY, USDCHF, USDCAD and AUDUSD tracking near their 22 day average ranges for the day.
In other markets a snapshot is showing:
- spot gold is trading up $0.57 or 0.04% at $1553.49. The price was much higher at $1562.45 but has come off with the rise in stocks over time
- WTI crude oil futures are trading up $1.35 or 2.72% at $50.96. Getting back above the $50 level is a relief for longs today.
In the premarket for US equities, the futures are implying a higher opening and trading near high:
- S&P index +29 points
- Dow +270 points
- Nasdaq + 108 points
In the European equity market, indices are also higher him him him:
- German DAX, +1.32%
- France's CAC, +1.0%
- UK FTSE 100, +0.66%
- Spain's Ibex, +1.1%
- Italy's FTSE MIB, +1.34%
In the US debt market yields are continuing its move to the upside with 10 year yields up 4.4 basis points. The 2-10 yield spread is also a bit higher:
European yields also mostly higher on the day
