Major currency pairs are bunched together
The NZD has rebounded today (yesterday it was the weakest currency). The USD is the weakest currency in the morning snapshot at the start of the North American session. Trump has threatened $500B of tariffs on China goods. The Yuan was fixed lower (WSJ headline: "China's Yuan Weakens on Trump's Threat of Broader Tariffs"). The squeeze is on. Can they get to a table and work this out?
The major currencies are relatively bunched together, with no clear winner. It is Friday in the summer. So traders may be content to let the weeks flows dictate the ups and downs.
Ranges are limited. The AUDUSD is near the 22 day average trading range. Pairs like the EURUSD, GBPUSD, USDJPY, USDCHF are all well below their 22 day averages. Again, that is reflective of the so-so trading action today.
In other markets:
- Spot gold is up $1.18 or 0.10% at $1224. The 200 week MA is up at $1234. That MA was busted (to the downside) this week
- WTI crude oil is up $0.41 or 0.59% at $69.87
- Bitcoin is up $58 at $7471
In pre-market trading, the US stock futures are implying a mixed opening:
- Dow is down -56 points
- Naadaq is up 13 points
- S&P is down about -3 points
In European markets are lower:
- German Dax is down -0.6%
- France's CAC is down -0.55%
- UK's FTSE is down -0.2%
- Spain's Ibex is down -0.3%
Microsoft announced better earnings and revenues and after an initial dip, are trading higher in pre-market trading. The price is up 3.3% in pre-market trading.
In the US debt market, yields are higher:
In Europe, 10 year yields are higher as well:
There is no US data out at 8:30 AM ET or 10 AM ET, but Canada will release Retail sales and CPI data. Fed's Bullard will speak shortly on the economy and monetary policy. Bullard is more dovish.
