The USD is stronger as markets recover
The markets have recovered today on hopes that action will be taken to ease the economic impact of the coronavirus call and there may be a solution to the oil war down the road. The CAD which was the weakest of the majors yesterday, is the strongest currency today. The JPY is the weakest (was the strongest yesterday). The US dollar is finding some flows as stocks recover.
The ranges and changes are healthy again with most pairs above the 22 day average range. The JPY pairs are the run away strongest (lower JPY) with the USDJPY up 241 pips and the range of 319 pips. The EURUSD and the GBPUSD are near lows with each trending in the red for most of the day (the highs were made in the first hours of the day).
In other markets:
- Spot gold is trading down $17.80 or -1.06% at $1662.54.. The price high reached $1680.75. The low was down at $1649.48. There is less flight into the safety of gold. The high price yesterday reached $1703.39 yesterday
- WTI crude oil futures are up $3.14 or 10.09% at $34.28. The contract is recovering some of the sharp losses on the Russia/Saudi Arabia price and production war from over the weekend
In the premarket for US stocks, the futures are implying sharply higher levels, after record point plunge yesterday.
- S&P index up 112.59 points
- Dow industrial average up 982.92 points
- NASDAQ index up 333 points
In the European equity market major indices are higher:
- German DAX, +2.62%
- France's CAC, +3.3%
- UK FTSE 100, +3.3%
- Spain's Ibex, +1.9%
- Italy's FTSE MIB, +1.3%
In the US debt market, yields have recovered from all-time record close yesterday. The 10 year yield is up 14.7 basis points to 0.688% after falling to a low yield of 0.31% yesterday. The 2-10 year spread is also widened out to 24.89 basis points from 15.97 basis points at the close yesterday.
In the European debt market, German, France and UK benchmark 10 year yields are up the largest. Italy yields are lower after a number of days of investors shunning their debt instruments.
