The USD is lower as North American traders enter for the day/week
As the North American traders enter for the day/week, the NZD is the strongest while the GBP is the weakest. More tariff worries pushed yields and stocks lower but they are recovering off low levels. The "risk off" flows did not kick in. In fact, the both the AUD and the NZD are the strongest which is a bit weird (there was also a story in the NY Times that the White House was looking at Australia for tariffs as there was a spike in aluminium exports).
Anyway, the technical picture is squeezing to the upside for those two currencies. PS don't forget the RBA is also largely expected to cut tomorrow (it is "priced in" and would be a surprise if it did not happen).
Key data today with the ISM data scheduled for release at 10 AM ET
The AUDUSD and the NZDUSD are near the highs fo the day. The GBPUSD is near session lows as Pres. Trump starts his visit there.
The GBPNZD is the biggest mover of the day (sticks out). Looking at the hourly chart, with the MA overlays, the pair moved below the 100 AND 200 day MA which are both at the 1.9300 level (see chart below) and trades at the lowest level since April 2. Not only are the key MAs being broken but both are at a "natural" level (1.93000).
In other markets:
- Spot gold is up $12.20 on flight to safety flows and lower dollar (a bigger move given the other moves honestly). The price is up 0.95% at $1317.97 and moving away from the $1300 level.
- WTI crude oil is up 0.94 or 1.76% at $54.45 and corrects some of the sharp declines seen last week.
- In the pre-market for US stocks:
- Dow is down -84 points but off lows
- S&P is down 8.75 points
- Nasdaq is down -39 points
European shares are down as well:
- German Dax, -0.17%
- France's CAC -0.11%
- UK FTSE -0.15%
- Spain's Ibex, -0.47%
- Italy's FTSE MIB, -0.24%
In the US debt makret, the 2 year continues to lead the way lower as the market bullies the Fed toward easing. It is down -4.6 bps. Other yield sare lower but not as much.
European 10 year benchmark yields are lower as well in a global deflation theme:
