USD backs off as markets threaten back to back stock gains
The flight to the dollar "safety" is off today as stocks look to rallly for the 2nd day in a row (could be the first in 6 weeks). The AUD and the GBP which have been hit hard of late, are the strongest of the major currencies in "risk on" flows. The USD and EUR are the strongest of the major currencies.
Ranges remain elevated as does volatility. The GBPUSD has a low to high trading range of 466 pips. The index is up 255 pips in the morning snapshot (was up 393 points). The GBPUSD sniffed the 100 hour MA near the highs (currently at 1.18909). The AUDUSD with a 320 pip trading range, was able to get above its 100 hour MA since March 9th but has backed off (100 hour MA is at 0.5920). The pair is still up 150 pips. The EURUSD is relatively tame with 178 pip range and up only 27 pips after it's rally fizzled. Germany is starting its lock down.
In other markets:
- Spot gold is trading back above $1500 at $1504.27. That is up $33 or 2.25%
- WTI crude oil is also higher by $0.85 or 3.37% at $26.07. The high reached $27.89. The low extended to $24.73. The WSJ reported that the US may impose production quotas.
In the pre-market for US stocks, the futures are implying sharply higher prices:
- The Dow is up 271.98 points
- The S&P is up 46.11 points
- The Nasdaq is up 271.98 points
In the European markets, they too are up for the 2nd day:
- German DAX +4.29%
- France's CAC +5.28%
- UK's FTSE 100 +1.86%
- Italy's FTSE MIB +2.33%
- Spain's Ibex +3.75%
In the US debt market, the yields are lower with a flatter yield curve.
In the European debt market, the 10 year yields are lower.
