It is the day after the FOMC. It is also the day after the RBNZ (although for some it is the same day). The Fed was more hawkish overall with their statement. I thought the RBNZ was more bearish for their currency. Yet one of the strongest currency is the NZD in trading today. Go figure. Granted, the NZD is higher against the EUR and the CHF as it looks like Germany will will report CPI of -0.2% MoM vs. -0.1% MoM, So there is justification in some respects (against other currencies, the NZD is little changed).

The weakest currencies are the aforementioned EUR and CHF. Those will likely move along together as the EURCHF is down to 1.2057 currently and the SNB has said that they will continue to defend the 1.2000 level against their main trading partner. So expect that if the EUR goes down, so too does the CHF.

The strongest and weakest currencies in trading today (a snapshot)

The strongest and weakest currencies in trading today (a snapshot)

The low to high trading ranges are again light vs the averages over the last month of trading (22 trading days).

The trading ranges for the major currency pairs are below the 22 day averages (month of trading).

The trading ranges for the major currency pairs are below the 22 day averages (month of trading).

The US will release the weekly Initial Claims for the current week with the estimate of 285K vs 283K. The 4 week MA should continue to be near low levels since 2000. The biggest release, however, will be the first look at the 3Q GDP with the expectation of 3.0%. Consumption is expected to rise by 1.9% vs. 2.5% in Q2. The Core PCE is expected to show a small 1.4% rise. Germany will release the aggregate CPI figure at 9 AM (the pieces which have been released are looking more like -0.2 to -0.3% vs. -0.1% estimate for the month), and Chair Yellen speaks at 9 AM. Any insight from Yellen will certainly worth a listen.

Trends in GDP

Trends in GDP

Stocks and Bonds

The US bonds are up to 2.30% (from 2.28% at this time yesterday) after the Fed’s actions yesterday. The German Bund yield meanwhile fell to 0.86% from 0.88% at this time yesterday. This should be bullish for the greenback. Stock markets in Europe are down, with the German Dax giving back 1.65% in trading today. The pre-US open futures are also showing weakness.

A snapshot of the Stock and Bond market.

A snapshot of the Stock and Bond market.