The USD is weaker
The snapshot at the start of the North American session is showing that AUD as the strongest and the JPY as the weakest. That is the clue that "risk on" flows are in play. Stocks indeed have recovered in trading today. China and the US will be talking trade on January 7-8 on the "vice ministerial level". The Shanghai closed up 2%. The Dow is up around 1.2% now.
Of course, the US and Canada employment report will be released at 8:30 AM ET. At 10:15 AM ET/1515 GMT, Fed chair Powell speaks on a panel with Bernanke and Yellen.
The changes and ranges are showing high and low ranges. The USDJPY - which got hit hard yesterday with the flash crash but did recover as the day went on - continued its move back higher, but has moved back into the middle of the range. The USDCAD is trading at the lows for the day ahead of employment (risk on) and AUDUSD is trading near its highs.
In other markets:
- Spot gold is down -$-3.07 or -0.24% at $1291.23
- WTI crude oil is up $0.78 or +1.72% at $47.88
US stock futures imply higher opens
- Dow, +278 points
- S&P, up 31 points
- Nasdaq, up 91 points
The European shares are higher:
- German Dax, up 1.78%
- France's CAC up 1.3%
- UK FTSE, up 1.31%
- Spain's Ibex, up 1.88%
- Italy's FTSE MIB, up 2.25%
In the US debt market yields have recovered higher after the sharp fall yesterday:
In the European 10 year benchmark notes, yields are also higher. The German 10 year moved to the lowest level in over 2 years yesterday.
