The CAD is the strongest. The AUD is the weakest as NA traders enter
But the major pairs are bunched together
The snapshot of the major currencies shows that that CAD is the strongest, while the AUD is the weakest as the North American traders enter for the day. However, the major currencies are bunched together. Looking at the USD, the EURUSD< GBPUSD, USDJPY and USDCHF are all within 0.08% from it's close from yesterday.
The ranges and volatility are showing a market that is perhaps doing more watching vs trading. Let's face it. The weekend is approaching. The verbal battle between Pres. Trump and Kim Jong Un is continuing and who really knows what may happen over the weekend? So that dynamic, should lead to squaring up before the weekend and/or traders trading cautiously as a result of the increased risk (i.e. do more buying and selling trading in a range). It is easier to hedge/manage risk when the markets are open.
In other markets today:
- Gold is up $1.20 to 1287.63
- WTI crude is down -$0.12 to $48.48
- US yields are near unchanged. 2 year 1.326%, unchanged. 10 year 2.197%, unchanged. 30 year 2.7824%, up 1 bp
- US stock futures are lower but recovering a bit. S&P futures are down -2.75 points. Dow futures are down -14 points. and Nasdaq futures are down -16.50 point
Yesterday, the US PPI disappointed. Today the US CPI will be released at 8:30 AM ET/1230 GMT. (est +0.2% MoM and 1.8% YoY. Ex food and energy +0.2% and 1.7% respectively).