The USD continues to get hammered. It is the weakest of the major currencies by far as London/European traders look to exit for the day.
EURUSD:
The EURUSD moved to a new high of 1.14267 and in the process has gotten closer to the next targets at 1.14323 and the 50% midpoint of the move down from the October high at 1.14385 (see post here)
GBPUSD:
The GBPUSD is also making new highs at 1.36964. The 50% midpoint of the move down from the June 2021 high comes in at 1.3704. The 200 day moving average comes in at 1.37334 .
USDJPY:
The USDJPY has moved down to a low of 114.72 and in the process has tested the 50% midpoint of the move up from the December. Get below and the balance shifts more to the downside for the pair.
USDCHF:
The USDCHF has now cracked below its 200 day moving average at 0.91642. Recall that level held support on Thursday of last week before running higher. The pair is also below a swing area between 0.91567 and 0.91604. The low price just reached 0.91409
USDCAD:
The USDCAD is testing its 200 day moving average at 1.24989. Key support target.
AUDUSD:
The AUDUSD is up testing its 100 day moving average at 0.72842. The high price just reached 0.72806. Also in the area is the 50% retracement at 0.72735 and swing highs from the end of December and early January.
Although the USD is getting hit, the stocks have given up some of their gains (although now trading mid range for the S&P). The US yields are marginally lower with the 10 year down -1.7 basis points at 1.729%. The US treasury will auction off $36 billion of 10 year notes at 1 PM ET. The previous auction last month came in at a yield of 1.518%. With the current 10 year at 1.725%, the yields are up a good 21 basis points in one month.
Looking at the comparable 10 year yields in Europe, the US yield is as much at 1.788% to 0.402% higher than similar benchmark yields there. The 3 year note auction was met with strong international demand yesterday.
