The AUD is the strongest and the USD is the weakest as NA traders enter for the day

Technical Analysis

Author: Greg Michalowski | forex

Cable recovers

The AUD is the strongest (the RBA kept rates unchanged as expected), and the USD is the weakest as the North American session begins. The GBP is seeing some upside momentum into the session on reports that PM Johnson is doing well, not on a ventilator and may be leaving the ICU today (sources from an FT reporter tweet - ps the tweet was taken down so be careful).  The USD is weakest vs the AUD (-1.59%), the NZD (-0.85%) and the GBP (-0.84%). Those currencies have been hard hit in the past when stocks fell. When stocks rise (yesterday the major US indices all closed up over 7%. That rally is continuing today), those currencies tend to benefit.  The JPY is also weak today as investors flee the "safe haven" currency. Hopes for a flatter yield curve are helping risk on sentiment. Him

Cable recovers
The ranges and change show the GBPUSD is trading near session highs in the morning snapshot.  The AUDUSD is also stronger (up 97 pips on the day).  The USDCAD is lower (higher CAD) although oil prices have given up  earlier gains and trades near session lows. OPEC is said to be getting close to a cut in production, but only for  3 months. That is being perceived as not enough to sop up the excess supply in the market.  

The ranges and changes of the major currencies
In other markets, the snapshot is showing:

  • Spot gold is trading down $6.30 or -0.38% at $1654.70. The precious metal was much higher at $1679.68 earlier in the session. The low reached $1644.47.
  • Crude oil is trading up 0.10 or 0.65% at $26.19
In the premarket for US stocks, the futures are implying a higher opening
  • Dow up 687 points
  • NASDAQ up 180 points
  • S&P index +69 points
In the European markets,
  • German DAX is up about 3.5%
  • France's CAC up 3%
  • UK's FTSE 100 up 2.7%
  • Spain's Ibex, up 3.2%
  • Italy's FTSE MIB up 4%
In the US debt market yields are moving higher for the 2nd consecutive day this week.. The yield curve is steepening as well with the 2 – 10 year widening to 45.08 basis points from 40.76 basis points at the close yesterday.

US yields are higher in the yield curve super
In the European debt market, the benchmark 10 year yields are rising as well. German yield is up to -0.365% up 6 basis points on the day. France's 10 year yield is trading above 0.0% at 0.098%. That is up 3.3 basis points.

European benchmark yields are all higher
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