The GBP is the strongest. The CHF is the weakest
The CHF weakened in the European session. SNB intervention? Illiquid market? Hedge fund buying? Technical break?
Probably a little bit of each, but it is the weakest currency as North American traders enter for the day. On the other side, the GBP is the strongest. The USD has most of its move vs. the CHF (+0.62) and AUD (+21%) but is down vs the GBP and the NZD (-0.18% for each). The greenback is little changed (vs yesterday's close) versus the EUR, JPY and CAD.
The ranges for the day, show most action in the CHF pairs (GBPCHF range at 133 pips and up 99 pips on the day) is the big mover. The AUDUSD has a range above it's 22 day average today after headline CPI came in weaker than expectations (+0.2% vs 0.4% est). The AUD pairs have recovered some of their losses since the bottom was hit in early European trading.
A snapshot of other markets shows:
- Spot gold $1246.36, down $-3.69
- WTI crude oil $48.33, up $0.43 or +0.90%
- US stocks in pre-market trading: S&P futures up 4.25. Nasdaq futures up 12.25 points. Dow futures up 65 points.
- US yields: 2 year 1.3869%, unchanged. 5 year 1.881%, up 0.8 bp. 10 year 2.3246%, +1 bp. 30 year 2.914%, unchanged.
- European stocks are showing gains. Dax up 0.3%. CAC +0.55%. UK FTSE +0.4%. Ibex +0.2%
- European 10 year yields: Germany 0.556%, down 1 bp. France 0.810%, unchanged. UK 1.232%, -2 6 bp. Italy 2.116%, -3 bp. Portugal 2.968%, -1.3 bp. Spain 1.527%, -2.5 bp.
ON the schedule today:
- US new home sales. 615K annualized pace vs 610K last
- DOE crude oil inventories -3000K vs -4727K. Note that the private data last night showed a huge draw of -10,230K. Gasoline stocks were up 1903K. The expectation for gas from the DOE is -1800K. The data can be very volatile during the summer travel season.
- The FOMC decision and statement will be released at 2 PM ET/1800 GMT. No change expected.
- The treasury will auction 5 year notes.
