The snapshot of the strongest and the weakest as NA traders enter for the day
The AUD is the strongest as North American traders enter for the day, while the JPY is the weakest. The risk on trade is dominant. The AUD is also higher after the RBA kept rates unchanged. The JPY and the CHF will weaken on risk on flows. The USD is sitting in the middle with mixed results. The greenback is higher vs the JPY, CHF and EUR and down vs the AUD, GBP, CAD and unchanged vs the NZD.
The ranges and changes are showing the dollar is near highs for the day against the JPY, CAD and EUR. The GBPUSD has had a down and up day but opens the NA session back in positive territory and nearer the high.
In other markets, the risk on theme is also dominating:
- Spot gold is trading down $-9.47 -0.60% at $1567.20
- WTI crude oil futures are trading up $0.80 or 1.6% $50.91 after trading as low as $49.66 and overnight trading (lowest since beginning of 2019)
In the pre-market for US equities, the futures markets are implying sharply higher levels:
- The Dow is up 371 points
- The S&P up 39
- The NASDAQ is up 121 points
Tesla crosses $900 as it continues to soar to the upside as analysts jump on the bandwagon that is working his way toward becoming a $1 trillion company down the road.
In the European equity market, the major indices are also trading higher:
- German DAX, +1.4%
- France's CAC, +1.4%
- UK's FTSE 100, +1.4%
- Spain's Ibex, +1.5%
- Italy's FTSE MIB +1.7%
In the US debt market, yields are moving higher (risk on flows) with 2 year up 4.6 basis points and 10 year up 5.3 basis points. The 2-10 year spread is modestly higher (up 0.6 basis points):
In the European benchmark 10 year note sector, yields are also tracking a little more to the upside with most of the countries up over 3 basis points (Italy at 0.8 bps is the exception).
