Ranges are mixed in trading today
As North American traders enter for the day, the GBP is the strongest and the USD is the weakest. The focus is on the GBP as negative rate ideas got a reprieve on comments from BOE's Bailey. That helped to boost the GBP pairs. The GBPs gains vs the USD, EUR, JPY and CHF are all up similar amounts (0.58% to 0.6%) in their act of solidarity. The USD was the strongest of the majors yesterday, but closed off the lows. That trend back down was continued today despite continued rise in rates in early trading. The US stock futures are implying modest gains at the start of trading today. There are a number of Fed speakers today, and proceedings on Capitol Hill with regard to the removal of Pres. Trump from office will dominate the news today. The Fed the officials have been more open to the thought of slowing down on purchases toward the end of 2021.
Looking at the ranges and changes, again the focus is on the GBP pairs, with little focus on the EUR (40 pip range), USDJPY (23 pip range) and USDCHF (25 pip range). The GBP pairs are trading near their highs for the day with the GBPUSD up 80 pips and the GBPJPY up 85 pips. The EURGBP is near its extreme with a 53 pips move (lower/GBP higher).
IN other markets:
- Spot gold is trading up $14.75 or 0.8% at $1858.53
- Spot silver is trading up $0.48 or 1.93% a $25.39
- WTI crude oil futures are trading up $0.66 01.26 percent of $52.91
- Bitcoin on Coinbase is continuing the rebound after falling to nearly $30,000 yesterday (from $42,000 on Friday). The current price is up $1360 at $35,306. The high price reached $36,604.51. The low price extended to $33,666
In the premarket for US stocks, the futures are implying modestly higher levels after yesterdays declines:
- S&P index up 9.5 points. The S&P fell -25 points or -0.66% yesterday
- Dow industrial average up 64 points. The Dow fell -89 points or -0.29% yesterday
- NASDAQ index up 45 points. The NASDAQ fell -165 points or -1.25% yesterday
In the European equity markets, the major indices are also trading lower on the day:
- German DAX -0.17%
- France's CAC, -0.14%
- UK's FTSE 100, -0.6%
- Spain's Ibex, -0.1%
- Italy's FTSE MIB, -0.25%
In the US debt market, the yields are trading higher. The 2-10 your spread is trading up as well by about 2 basis points to 102.12 from 100.11 yesterday
In the European benchmark 10 year yields are trading higher across the board with investors pushing up Italian yields the most at +6.3 basis points:
