The USD is ending the day as the strongest of the major currencies today in what was an up and down and up type of trading day for the greenback. The NZD is the weakest as markets are still wary about risk on flows.

The strongest to the weakest of the major currencies

There was little in the way of economic data. There was some Fed speak with members still looking to get rates to neutral as fast as possible with hopes that the cushion from strong employment will lead to a bending but not breaking (i.e. a soft landing).

The problem is the Fed lost credibility with there insistence that stimulation was still needed even while inflationary pressures were building. Why should the market trust the Fed going forward? Why believe they can maneuver and reach a soft landing?

Tomorrow CPI data will be released. The market is expecting a move lower from last months 8.5% for the headline and 6.5% for ex food and energy. The expectations are for 8.1% and 6.0% respectively. The market will look for surprises and react accordingly,, but it still may be hard to reverse the market trends of late.

The dollar moved modestly higher despite a move lower in yields.

  • 2 year yield 2.612%, -0.8 bps
  • 5 year 2.913%, -7.0 bps
  • 10 year 2.997%, -8.2 bps
  • 30 year 3.131%, -7.7 bps

In the stock market, the markets were mixed with the Nasdaq up nearly 1% while the Dow fell and the S&P was marginally higher. The final numbers show:

  • Dow fell -84.96 points or -0.26% at 32160.75
  • S&P rose 9.81 points or 0.25% at 4001.04
  • Nasdaq rose 114.43 points or 0.98% at 11737.68
  • Russell 2000 fell -0.29 points or -0.02% at 1761.78

Bitcoin is trading at $31062 after trading as low as $29731 today - the lowest level since July 20, 2021.There is some trouble in the derivative stablecoins that can be blamed for some of the declines, but overall investors are taking on losses in a lot of "asset markets" (bonds, stock and even Bitcoin).

Although some people want to think of bitcoin as the new safe haven gold, the new global currency, etc. the price is down -33% YTD and -35.7% from the end of March high. In comparison, the Nasdaq is down around -19.7% from it's end of March high.

In other markets:

  • Gold fell -16.14 or -0.87% to $1837.81
  • Silver fell -$0.50 or -2.31% at $21.26
  • Crude oil continued it's move to the downside after trading above $111.00 last week. It is trading at $99.20 down -$3.87 on the day.

Good fortune with your trading.