Snapshot of the forex market as the NA session begins

The JPY and USD are the strongest and the AUD and the NZD are the weakest as investors shift again to risk off trades. The global fears of Covid are shifting the sentiment lower in stocks. The German Dax is down -3.2% and has shed -8.5% from Friday's high. The France's CAC is also down over -3% in trading today and is down -7.7% for the high on Friday. Angela Merkel wants to keep schools open but is looking to close restaurants, bars, and pubs (except for take-away). Theaters, operas, concert houses, fitness studios, casinos, cinemas are also to close. France's Emmanuel Macron will give a televised address to the French nation on Wednesday evening. He is expected to announce new coronavirus restrictions which could go as far as another national lockdown (although less strict than the first one last spring).

Snapshot of the forex market as the NA session begins

The ranges and changes are showing solid moves with the USD at or near high levels with the exception of the JPY (it is lower vs. the JPY). The USDJPY and the JPY crosses are all getting hit and near lows on "risk off" selling (and flight into the relative safety of the JPY.

The ranges and changes for the major currency pairs

In other markets:

  • spot gold is trading down $-19.50 or -1.02% at $1888.50
  • spot silver is trading down $0.44 or -1.8% at $23.93
  • WTI crude oil futures are trading down $1.84 or -4.62% at $37.74. Inventory data last night showed a bigger than expected build.

In the premarket for US stocks, the major indices are trading lower

  • S&P futures are implying a fall of -51 points. The index fell -10.29 points yesterday
  • NASDAQ futures are implying a fall of -153 points after rising 72.41 yesterday
  • Dow futures are implying a fall of -490 points after falling -222.19 points yesterday

In the European equity markets, indices are down sharply

  • German DAX, -3.5%
  • France's CAC, -3.1%
  • UK's FTSE, -1.8%
  • Spain's Ibex, -2%
  • Italy's FTSE MIB, -3%

In the US debt market, the yields are mixed but mostly lower. The 2 year yield is up 0.1 basis points. The 30 year bond is down about 1 basis point. The US treasury will auction off 5 year notes later today.,

US yields are lower

In the European debt market, the yields are mixed with Germany, France, UK yields lower in the 10 year sector. Spain, Italy, and Portugal yields are higher:

European yields are mixed