January 17, 2017: The GBP is the strongest The USD is the weakest.
The GBP was the weakest currency yesterday on the fears of unknown from May's speech today. She was more transparent in the speech today saying that the Britain would "leave the single market". Adding, "Instead we seek the greatest possible access to it..." She did say that the final exit deal would be put to a parliamentary vote.
The GBPUSD has rallied higher (higher than expected inflation numbers today give a bullish backdrop as well). The GBPUSDs gap from Friday was filled and then some (that was done before the speech). The price has moved the pair above the 1.2300 level. The high reached 1.2346 (currently at 1.2320 area). The 50% of the move down from the December high comes in at 1.2380 (FYI).
The weakest currency is the greenback as we move closer and closer to the inauguration of the 45 president of the US on Friday. His recent tweets have not stirred any pots.
Although in the 2nd one, he referenced his
wife's daughter's twitter account. The problem is @Ivanka is not her twitter account, but that of Ivanka Majic from South East, England. I notice yesterday when I clicked on the link, she had 3000+ followers. She is up to 4622 now. Creating thousands of new followers even before entering the White House...but she is from England? Oh well... She might be worth a follow.
The major currencies are all above the 22 day averages on the volatile trading day. More technicals to follow.
The US empire manufacturing will be released at 8:30 AM/1330 GMT with the index estimated to fall to 8.5 from 9.0.
Fed's Dudley is due to speak on consumer behavior at 8:45 AM ET/1345 GMT.
Davos is in progress.
A snapshot of the markets at 8:20 AM ET
- S&P futures index down -9 points, Dow futures down -51 points and Nasdaq futures down -19.5
- The European stocks are mixed: German Dax -0.12%, UK FTSE -0.76%, France CAC -0.09%, Spains Ibex +0.04%, Italy FTSE MIB +0.28%
- US yields are lower (hurting the USD). 2 Year down 3.2 bp to 1.16%, 10 year down 5.6 bp to 2.34%, 30 year down 5.2 bp to 2.936%
- Spot gold is up $10.11 and more comfortably above $1200 at $1213.
- Crude oil futures are up $0.83 or 1.58%