Traders back after the Labor Day holiday on Monday
The AUD is the strongest. The GBP is the weakest as traders return from the Labor Day holiday on Monday (although the markets were lively yesterday). The anxiety in the UK is keeping pound under pressure as we find out if the lawmakers take over and look to extend Brexit to January 31 (doesn't EU have to agree to that too?). If it passes, PM Johnson is expected to call a vote for an election (to be voted on Wednesday). See video from yesterday HERE.
In Australia, the RBA kept rates unchanged as expected. There has been a pop in the AUDUSD (and AUD) after the low today in the AUDUSD, could not reach the August low at 0.66774 (low reached 0.6687 before moving back higher)
The ranges and changes charts below are showing the activity in the GBP pairs (again). They all outpace the other currency pairs in the price action movement. The pairs, however, are all off extreme levels as anxiety about the vote lingers. The EURUSD has kept it's negative bias on the day -cracking below a trend line at 1.0962 and a trend line on the weekly at 109.41 (see video here). Stay below those levels today keep the sellers in complete control.
In other markets:
- Spot gold i s up $3.15 or 0.21% at $1532.47
- WTI crude oil is down -$1.44 or -2.6% at $53.65
In the pre-market for US stocks, major indices are implying a lower opening:
- Dow, -225 points
- S&P, -23.5points
- Nasdaq, -67 points
In the European stock market, major indices are lower
- German DAX, -0.36%
- France's CAC, -0.5%
- UK's FTSE, -0.23%
- Spains Ibex, -0.26%
- Italy's FTSE MIB, -0.17%
In the US debt market yields are marginally lower
In Europe the benchmark 10 year yields are lower as well, with investors pouring into Italian notes.
