Stocks higher. Yields lower. ECB increases PEPP (Pandemic Emergency Protection Programme) purchases
As North American session begins, the AUD is the strongest. The JPY is the weakest with the USD following behind the JPY. The US stocks are higher in pre-market trading with the Nasdaq index leading the way. German Dax is working on its 4th record close today (it is higher now). US yields are lower as are European yields as the ECB signaled that they will make faster PEPP purchases in the next quarter. The German 10 year moved to the lowest level this month. Gold is higher.
The USD is off highs but nearer the highs for the day. The USD is only higher vs the JPY but has trimmed some of the gains in Europe/London session. The EURUSD is coming off its highs after the ECB decision. Earlier, the pair tested its 200 hour MA and found sellers against the level. The holding of the level, increases the levels importance for the rest of the day. The ranges are "meh", with the USDCHF and NZDUSD nearest their 22 day averages. The GBPUSD and USDJPY ranges are the lowest of the major currency pairs at 45 pips. The GBPUSD has moved above its 38.2% of the move down from the Feb 24 high at 1.39546 (trades at 1.3970 currently).
In other markets:
- Spot gold is trading up $7.70 or 0.44% at $1734.19
- spot silver is up $0.11 or 0.43% at $26.32.
- WTI crude futures are trading up $0.89 or 1.3% at $65.33
- the price of bitcoin is trading down $199 or -0.34% at $56,720 (virtually unchanged for Bitcoin). The high for the day reached $57,200. The low extended to $54,283.
In the premarket for US stocks, the futures are point a higher opening. The Dow Jones industrial average closed at a record level yesterday.
- Dow Jones industrial average up 111 points
- S&P index up 29 points
- NASDAQ index up 247 points
In European equity markets, major indices are also trading mostly higher. The German Dax is working on yet another all-time record close today (it has close that the records each day this week).
- German Dax, +0.14%
- Frances CAC, +0.3%
- UK's FTSE 100, unchanged
- Spain's Ibex, +0.35%
- Italy's FTSE MIB, +1.1%
In the US that market, yields are lower with the exception of the 30 year which is up marginally. The U.S. Treasury will auction off 30 year bonds at 1 PM ET.
In the European debt market, the benchmark 10 year yields are also lower after the ECB decision.
At 8:30 AM ET, ECBs Lagarde will starter press conference. The ECB will announce their changes in growth and inflation expectations. Also, at the bottom of the hour, the US initial jobless claims will be released with expectations of 725K vs 745K last week.
Later the JOLTS jobs figures for January will be released at 10 AM ET. As mentioning treasury will auction off the 30 year bonds at 1 PM ET. The US household change in net worth for the fourth quarter will be released at 12 PM ET
