The GBP is the strongest and the CHF is the weakest as the North American session begins. The USD is mostly higher (although lower vs the GBP and NZD. The Bank of England raised rates by 0.25% as expected with a vote of 5-4. However, the dissenters wanted a 50 basis point rise helping to push the GBP higher. Having said that, the GBPUSD is still lower than the high reached in January at 1.37479. The pair trades at 1.3611 currently. The EURGBP IS trading to new cycle lows (higher GBP) and is testing the 2019 and 2020 lows at 0.8283 and 0.8259. The price moved has moved to low of 0.8283 so far.
The ECB is set to announce their rate decision imminently with no change expected. Lagarde will have her press conference at 8:30 AM ET.
The other major story is the miss by Meta (Facebook) and guidance lower. The tech/social media behemoth is trading down over -22%, leading the major indices (especially the Nasdaq) lower as well. The Nasdaq futures are implying a decline of over 325 points currently.
In other markets:
- Spot gold is trading down $4.50 or -0.25% $1801.78
- Silver is trading down $0.29 -1.26% at $22.35
- crude oil is trading down $1.03 at $87.23
- the price of natural gas is trading down $0.38 or -7.14% at $5.11
- bitcoin is trading at $36,709 after trading at $36,950 near 5 PM ET yesterday
The stock futures in the US are implying a lower opening after matters surprise earnings and guidance. Meta-shares are down -22% in premarket trading:
- Dow industrial was -45 points after yesterday's 224.09 point rise
- S&P index -45 points after yesterday's 42.84 point rise
- NASDAQ index -314 points after yesterday's 71.5 point rise
In the European equity market, the major indices are mostly lower with the Spanish Ibex the one exception
- German DAX, -0.4%
- France's CAC, -0.2%
- UK's FTSE 100, -0.2%
- Spain's Ibex, +0.2%
- Italy's FTSE MIB -0.3
IN the US debt market, rates are higher with the yield curve moving up a few basis points from the 60 bp floor (in the 2-10 year spread).
In the European debt market ahead of the ECB, the yields are also trading higher with the UK yield up about 10 basis points after the rate decision in the morning snapshot.
