Stocks getting smashed in premarket trading.
As stocks get smashed in premarket trading, the JPY is the strongest on the Pavlovian reaction to the "relative safety of the JPY". The CAD is the weakest, and being helped by the sharp decline -7.17% fall in the price of crude oil. The USD is the mixed with declines vs the EUR, JPY and CHF and gains vs the CAD, AUD. The NZD and the GBP are near unchanged on the day.
Looking at the ranges and changes, the ranges are over the 22 day averages. The USDJPY is trading near the session lows at -168 pips. The total range for the day is 186 pips. The other JPY crosses are trading sharply lower. The GBPJPY is down -225 pips and leads the way with the largest price change on the day. The USDCAD is trading near the high (up 108 pips) after opening lower on the day.
In other markets, the snapshot is showing:
- Spot gold is trading down $59 or -3.84% at $1471.40
- WTI crude oil futures are trading down $227 worse -7.15% at $29.44
In the US debt market, the major yields are all trading sharply lower after the Fed's 100 basis point cut. The 5 year is leading the way at -22.6 basis points. The yield curve is flatter with the 2-10 year spread at 43.19 basis points versus 47 basis points on Friday.
In the 10 year benchmark yields in Europe yields are mostly higher with the exception of the UK 10 year -3.8 basis points. The investors are shunning the European market.
The US stock futures are limit down. But the ETF's are implying:
- Dow -10.11%
- S&P -9.76%
- QQQ/NASDAQ -8.53%
