The GBP is the strongest. The JPY is the weakest.
As NA traders enter for the day, the GBP is the strongest, while the JPY is the weakest. The GBP is benefiting from a higher than expected inflation. For the JPY, there has been a rebound in stocks but even so, the JPY pairs are off their extremes.
The volatility is centered in the GBP pairs. The CAD is doing ok as well with the USDCAD trading to it's 22 day average trading range (about a month of trading). The GBP pairs are near extreme levels .
A snapshot of other markets shows:
- Spot gold is down -$2 or -0.15% to $1264
- WTI crude oil is down -$0.20 to $45.87
- US debt yields are little changed from the closing levels yesterday. 2 year is at 1.3552%, unchanged. 5 year 1.7797%, unchanged. 10 year 2.2127%, unchanged. 30 year 2.8725%, up 0.3 bp The US treasury auctions 30 year bonds today.
- US pre-market stock futures are higher. S&P is up 4.5 points. Nasdaq futures are up 18 points. Dow futures are up 22 points.
US PPI will be released at 8:30 AM ET with final demand estimated to show a 0.0% unchange reading. The YoY is expected to fall to 2.3% from 2.5% last month. Ex food and energy the index is expected to rise 0.1% and stay unchanged at 1.9%.
The Fed kicks off a two day meeting today. That means nothing as we won't hear anything until tomorrow. Nevertheless, the Fed is expected hike rates by 0.25%.
