Risk on trading is the theme for the day.
Traders enter for the day, the forex markets are in a "risk on" mood. The AUD, NZD are fighting for the strongest of the majors, will investors get out of the safe havens including the JPY and CHF. The USD is mostly lower with declines against the AUD, NZD, CAD and GBP and gains vs the JPY, CHF and EUR. Over the weekend, there was some better coronavirus news from place like Italy, Spain, even NY which is helping the tone. The Vix is down to 44.5 area. Yields are higher.
Even the ranges in the forex market are retreating from the breakneck pace of prior weeks. The EURUSD has erased earlier gains and trades modestly lower. The GBPUSD after opening lower on the back of PM Johnson being hospitalized, is trading higher. The JPY pairs are all higher on risk on sentiment but off the highest levels. The USDCAD has the largest range and reversed earlier gains and then some to the downside. The AUDUSD and the NZDUSD are trading at session highs.
A snapshot of other markets are showing:
- spot gold is trading up $20.40 or 1.25% at $1641.20
- WTI crude oil futures are trading down $1 or -3.56% at $27.33
In the premarket for US stocks the futures are trading higher and implying a higher open:
- Dow +761 points
- S&P, +91 points
- Nasdaq, +275 points
In the European market, major indices are higher with:
- German DAX +4.4%
- France's CAC +3.5%
- UK FTSE 100 +2.1%
- Spain's Ibex,+3.5
- Italy's FTSE MIB +3%
In the US debt market, yields are higher with the yield curve a bit steeper.
In the European debt market, the benchmark 10 year yields are trading mixed with Germany and UK yields higher marginally and France, Spain, Italy, and Portugal down marginally.
