The USD is mostly lower
As North American traders enter for the day, and the sentiment in pre-market for stocks reverses some of the gains from yesterday, the JPY is the strongest and the CAD is the weakest. The USD is mostly weaker with the greenback down vs the EUR, GBP, JPY, CHF and NZD. and higher vs the CAD and AUD. The CAD weakness continued after a corrective move after the run lower on the BOC decision yesterday, ran it's course. The price of the USDCAD bounced off its 200 day MA which helped the bearish case for the loonie. The JPY and CHF seem to gathering safe haven bids after the continued move higher in coronavirus cases and with it fear.
Looking at ranges and changes, the USDJPY and USDCHF reached trading at or near their session lows. The USDCAD is at its highs. The EURUSD has had an above average trading ranges so far at 80 pips and is near its highest levels for the day.
In other markets:
- spot gold is higher on safe haven bids (remember it did move lower as stocks declined last week so be aware). The prices up $14.70 or 0.9% at $1651.66
- The price of WTI crude oil futures are up only $0.26 or 0.6% at $47.05. The OPEC+ is trying to push through a greater than expected 1.5 billion barrel per day decline in production, but they will still getting pushback from Russia
In the premarket for US stocks, the futures are implying a sharply lower open:
- Dow, -603 points
- S&P, -72 points
- Nasdaq -210 points
In the European equity markets, major indices are also trading lower after earlier gains:
- German DAX, -1.7%
- France's CAC, -1.8%
- UK's FTSE 100, -1.8%
- Spain's Ibex, -2.3%
- Italy's FTSE MIB -2.1%
In the US debt market, yields have moved reversed back lower after gains yesterday. The 10 year yield is down 10 basis points and back below the 1.0% level:
In the European debt market, the benchmark 10 year yields are trading mixed with investors fleeing Spain, Italy, and Portugal.
