January 12, 2017. The JPY is the strongest. The USD is the weakest.

The snapshot of the strongest and weakest as NA traders enter shows that the JPY is the strongest, but it is really the USD the weakest that is driving the car. Less than 24 hours after the president-elects press conference, the market (world?) is still shaking their heads and asking "What was that?". What it was not was about what he will do (no talk of fiscal spending or other policy) but more about "the man" himself with a lot of denial and finger pointing. He did say he would take on pharma and pharma prices. That is worth exploring, but that will hurt those stocks. In a first ever, he singled out a reporter from a news organization and said their news was "fake news". Take the question and answer it truthfully. Fasten your seat belts.

Bond yields are lower today. The 2 year is at 1.63%, down 2.2 bp. The 10 year is down 3.8 bp to 2.334%. Gold is up $13.16 or 1.10%. It is up about $80 or 7.1% from the low and tests the 38.2% retracement level (see chart below).

Stocks are lower in pre-market trading with the S&P -5 points. Dow futures are down -35 points and Nasdaq futures are down 12.75 points.

The dollar lower is pretty much across the board with all pairs down at least 0.65% in the snapshot. The ranges are up there as well with all the major currency pairs hitting and surpassing their 22 day averages (see red line in the lower chart below).

At 8:30 AM ET:

  • Canada New housing prices are expected to rise 0.3%
  • US import price index is expected to rise +0.7% (vs -0.3% last month)
  • US Initial jobless claims are expected to rise to 255K from 235K. The holiday's can mess with seasonals.
  • Feds Evans, Lockhart (panel discussion) and Harker are speaking

There is a 30 year bond auction at 1 PM ET (the 10 year yesterday attracted lots of demand) and the Federal budget numbers will be released at 2 PM.

Later still after the close, Chair Yellen will speak at a town hall in Washington DC. I bet she takes all questions.