October 28, 2016: The NZD is the strongest. The AUD is the weakest.
As the market gets ready for the US GDP the NZD is the strongest while it's sister commodity currency (and geographical neighbor) - the AUD is the weakest. The USD is mixed with declines against the EUR and NZD, the largest gain against the NZD and GBP and modest gains against the JPY, CHF and CAD. All that will change - likely - with the US GDP, but we have the baseline for the market.
What we also know from what has happened so far today, is the trading ranges are well below the 22- day averages (about a month of trading). The EURUSD has only moved 32 pips so far. USDCAD and USDCHF have moved a tiny 25 and 26 pips. The market has left room to roam off the data.
The GDP will be released at 8:30 AM ET.
- The expectation is for a gain of 2.6% QoQ annualized.
- Personal cconsumption is expected to rise by an equal +2.6% (was 4.3% last month).
- The Core PCR QoQ is expected to rise by 1.6% (vs 1.8% last).
Later at 10 AM ET, the University of Michigan sentiment index (final) is expected to come in and 88.2 versus 87.9.
A snapshot of other markets now show:
- European stock markets are mostly lower. UK FTSE is -0.04%, German DAX is --0.23%, Euro Stoxx is -0.29%. The France Cac bucks the trend at +0.33%
- The European 10 year yields are higher. Germany +1 BP, France +2 BP, UK +2 BP, Italy +8 BP, Spain +4 B
- In the US S&P futures are up +3.5 points. Dow Futures are up +24. Nasdaq futures are up 10.5 points.
- US yields are pretty much unchanged on the day across the yield curve
- Crude oil futures ate at $49.36, -$0.36 or -0.70%
- Spot gold is trading at $1266, -$1.29 or -0.10%
