The dollar is near high levels

The USD is the strongest of the major currencies as NA traders enter for the day. All the major currencies vs the USD - with the exception of the USDJPY - has seen the dollar push to new highs in the current hourly bar. The GBP is the weakest as the Brexit negotiations are set to begin.

Despite the dollar being the strongest, the ranges for the day are not all that impressive. With the exception of the GBPUSD which has a 94 pip range today, the rest of the major pairs vs. the USD are under 50 pips, and all but the GBPUSD and the EURUSD have ranges less than 40 pips. That is not all that impressive. The markets are in limbo (even the JPY crosses - apart from the GBPJPY - have had limited ranges vs their 22 day averages.

In other markets, the snap shot is showing:

  • Spot gold is up $0.70 or 0.05% at $1225.61
  • WTI crude oil is down -$0.47 or -0.64% at $71.47

In the pre-market for US stocks, the major indices are mixed:

  • Dow futures are implying a decline of -116 points
  • S&P futures are implying a decline of -5.47 points
  • Nasdaq futures are implying a rise of 27 points

Netflix is boosting the Nasdaq after smashing subscribers forecasts

IN European markets indices have turned negative:

  • German Dax is down -0.5%
  • France's CAC is down -0.2%
  • UK FTSE is up 0.20%
  • Spain's Ibex is down -0.6%
  • Italy's FTSE MIB is down -0.5%

In the US debt market, yields are down a fraction of a basis point:

European benchmark 10 year rates are mostly lower. Italian yields are bucking the trend and higher today.

On the calendar:

  • Housing starts and building permits will be released at 8:30 AM ET/1230 GMT. Weather is expected to hit starts (1210K vs 1282K last month). Permits are expected to rise to 1275K vs 1229K.
  • DOE inventory data. The private data showed crude down -2130K. Gasoline down -3420K. Distillates down -246K. The expectations from economists are looking for a build of 2500K in crude, a build of 1000K in gasoline and -1400k in distillates. The private and estimates are at odds with each other.
  • Feds Brainard speaks at 1610 GMT/12:10 ET but on Fintech and Financial Inclusion. Comments on the economy and monetary policy might come in Q&A
  • FOMC meeting minutes from the Sept 26 meeting minutes. The Fed raised rates by 0.25 bps and took out the word "accomodative" from the statement. Minutes will be released at 2 PM ET/1800 GMT