GBP is the strongest. JPY is the weakest
As the North American traders enter for the trading day, the ranking of the strongest to weakest shows that the GBP is the strongest while the JPY is the weakest.
The GBP has been helped by a drop in the EURGBP. That pair has been trending higher of late. Today the pair has retraced back toward the broken trend line at 0.9193 (the low reached 0.9189). A move back below that trend line would be more bearish. The GBPJPY has also risen sharply after testing the 38.2% of the move up from the October 2016 low to the most recent high in December 2016. That retracement level comes in at 139.33. The low today stalled at 139.27 (we trade at 140.26 currently). The JPY is the weakest helped by rising stocks. US rates are also a bit higher today (10 year up 2.4 bps).
The volatility is light today with all the major pairs and cross pairs below their 22 day averages coming into the NY session. The EURUSD and USDCHF ranges are particularly non trending with up and down ranges of 34 and 28. The EURUSD is trading near unchanged. The USDCHF is making new lows into the session.
A snapshot of other markets are showing:
- Spot gold down -$2.74 to 1288.22. $1300 looms above but will need some event it flight to safety event to push it above that level
- WTI crude oil i s down -$0.21 to $48.20. It is creating a $46-$50 range it seems
- US interest rates are a bit higher with 2 year up 2 bp at 1.325. 5 year up 2.3 bp at 1.766%. 10 year up 2.4 bp at 2.1904%. 30 year up 1.6 bp to 2.762%
- US pre-market futures are trading higher. S&P futures up 5.5 points. Nasdaq futures up 19.25 points.Dow futures up 58.00 points.
