The USD is mixed
As the NA trading day gets underway and the pendulum in US China has moved back to a more positive tone, the AUD is the strongest while the GBP and the JPY are the weakest. The USD is in the middle with some gains and some losses versus the major currency pairs.
The GBP has the largest of the trading ranges at 72 pips and trades years lows after being higher earlier. The BOE kept policy unchanged however there was some dovish dissents. The EURUSD is trading near unchanged (up 7 bps). The USDJPY moved lower but has moved sharply higher after tariff agreement concession headlines began to roll out. That certainly changed the tone in the markets across the board.
In other markets,
- spot gold is trading back down about $5 or -0.33% $1485.60
- WTI crude oil futures trading up $0.74 or 1.3% of $57.08
In the US stock market, the major indices are back higher
- Dow is up 114 points
- S&P futures are implying a 11 point gain
- NASDAQ futures are implying a 42 point gain
In the European market, major indices are also climbing:
- German DAX, +0.7%
- France's CAC, +0.2%
- UK's FTSE 100, +0.35%
- Spain's Ibex, +0.2%
- Italy's FTSE MIB, +0.6%
In the US debt market yields are moving back higher on the increased optimism. The 5 years up 5 basis points. The 2 years up 3 basis points. The 2-10 yield curve spread is moving higher as well, trading at 23.49 basis points up from about 22 basis points at the close of the day yesterday.
In the European debt market yields are also higher and the France's 10 year OAT has move back into positive territory (the high yield move to 0.029% and currently trades at 0.008%) That leaves the German 10 year as once again alone in negative territory.