The USD is mostly weaker
As North American traders enter for the day, the EUR is the strongest followed by the CHF, while the GBP is the weakest. The USD is mostly weaker with declines against most currencies with the exception of the GBP. The CHF continues to get safe haven flows. The EURUSD has now moved above its 100 day MA at 1.1096 (trades at 1.1112 currently). Another wild day is expected in the US stocks. The Dow futures have had a 1000 point swing in overnight trading.
Looking at the ranges and changes, the EUR and CHF are trading near USD low levels. The GBPUSD is trading at the lows (dollar higher). The ranges are healthy with low to high ranges of near 100 pips for all the major currency pairs.
In other markets:
- Gold is moving higher after the sharp fall on Friday. It is up $15.90 or 1% at $1601
- WTI crude oil is getting a boost back higher in trading today after the sharp declines last week. The contract is currently trading up $0.77 or 1.68% of $45.51
In the pre-market for US stocks, the futures are implying a sharply lower open:
- Dow is down -89 points
- S&P is down -15.8 points
- Nasdaq is down -24 points him him
In the European markets, stocks are down sharply with the exception being the UK FTSE 100 which is up marginally:
- German DAX, -0.99%
- France CAC, -0.78%
- UK's FTSE 100, +0.14%
- Spain's Ibex, -0.91%
- Italy's FTSE MIB, -2.84%
In the US debt market yields are moving lower with the yield curve steepening as expectations for a Fed cut(s) increase. The 2 year is down 15.2 basis points, and the 2-10 year spread is up by about 7 basis points to 30.54 from 23.56:
In the European debt market, the flows continued into the "safer" German, France, UK (yields are lower), while investors shun Spain, Italy and Portugal (especially Italy where yields are higher by 9.1 basis points).
