The USD is trading higher as North American traders enter
As North American traders enter for the day, the USD is leading the charge as the strongest of the major currencies, while he CAD is the weakest. Markets are calmer for a Monday, that may be helping the flows in the USD. The CAD has lower oil prices to contend with once again. The Bank of Canada lower rates in emergency meeting at the end of last week by 50 basis points which may be getting traders attention today.
The ranges and changes are showing, the major indices vs the USD showing ranges much lower than the 22 day averages (see red line in the lower chart below) with the USDCAD range outpacing the others (vs the USD). The USDCAD is also trading near/at it's high level. The EURUSD is also trading near the session low after a brief try to go higher in the Asian session faltered. The GBPUSD is down and up in trading today but still lower. The USDJPY traded lower but has since rebounded higher. The USDJPY is being contained above by its 200 day MA at 108.29 (the high reached 108.24 just below that MA level).
In other markets:
- Spot gold is trading down $-7.40 or -0.46% at $1620.69
- WTI crude oil is trading down $1.31 or -0.64% at $20.18
In the premarket for US stocks, the futures are implying a lower level for all the major indices:
- S&P, +1 point
- Nasdaq +21 points
- Dow -83 points
In the European stock market, the major indices
- German Dax -0.3%
- France's CAC -1.33%
- UK FTSE 100 -0.80%
- Spain's Ibex, -1.60%
- Italy's FTSE MIB -0.80%
In the US debt market the US yields are trading mixed with the yield curve flattening. The 2 year yield is up to basis points while the 10 year yield is down -3.2 basis points. The 2– 10 year spread is narrowed from 43.28 basis points on Friday to 38.17 basis points currently.
In the European debt market the benchmark 10 year yields are trading mixed with German, France and UK yields lower while Italy rates are higher. Spain and Portugal are near unchanged.
