The USD is modestly lower
The major currencies are bunched together in the morning snapshot. Nevertheless, the morning snapshot is showing the CAD is the strongest and the AUD is the weakest. The RBA in their minutes said no need to move rates, and the bias is more balanced. The USD is mostly lower with modest declines vs. all the major currencies with the exception of the AUD.
The top chart below shows the GBP is the biggest mover vs the USD but is trading near the midrange after a run higher (the pair ran higher after better employment data). The USDCAD is trading near its low for the day (down -25 pips). Earlier, the USDCAD fell below its 100 hour MA at 1.33258 and that gave the bears the green light to push lower (low reached 1.3303). The EURUSD has only a 28 pip trading range but is near it's high and is getting close to the 100 day MA at 1.13631 (the high reached 1.1361 and trades at 1.1355 currently). The major crosses are also trading with narrow trading ranges and well below their 22-day averages (about a month of trading).
In other markets:
- Spot gold is up $4.15 or 0.32% at $1307.75 and being helped by the weaker USD
- WTI crude oil futures are up $0.31 or 0.52% at $59.40. The higher crude is helping to weaken the USDCAD (higher CAD).
In the US stock market, the major indices are trading higher:
- Dow is up 108.90 points
- Nasdaq is up 31 points
- S&P is up 12 points
In European markets, major indices are higher:
- German Dax, +0.98%
- France's CAC, +0.47%
- UKs FTSE, +0.59%
- Spain's Ibex, +1.0%
- Italy's FTSE MiB, +0.75%
In the US debt market, the snapshot is showing modest changes around unchanged levels with shorter yields marginally lower and longer yields marginally higher:
The European yields are mostly higher. The Zew data in Germany/Europe were better and the UK had better employment numbers as well in their morning session.
