The GBP goes on a wild ride
As North American traders enter for the day, with hopes for a trade deal helping to push stocks higher. The White House is still proposing $1.6T while the Dems are still over $2T. The Wall Street Journal reported that the 2 sides are within $600 billion. What that means in the most current numbers is unsure. However, according to reports, the WH proposal has $250 billion for state and local aid, $400 per week for enhanced jobless benefits, $150 billion for education , $75 billion for testing/tracing, $60 billion for rental and mortgage assistance and $15 billion for food aid. The questions of liability which is important for the GOP, and whether $250 billion for state and local governments is enough for the Dems are the unknowns and main questions. However, we know is the the clock is ticking as the election, and confirmation of Amy Barrett are still fights to be fought. Meanwhile in the UK the GBP went on a wild down and up ride on backs of Brexit headlines
Looking at the ranges and changes, the obvious standouts are the GBP pairs as they tumbled and rose. The other pairs vs the USD are showing more modest changes with the low to high trading ranges of 54 pips or lower. The USDJPY is only trading with a 21 pip trading range and is only down -2 pips. The other pairs vs the USD are trading at low dollar levels to start the NY session. Jobless claims, personal income and personal spending along with PCE inflation measures, manufacturing PMI, construction spending and ISM data will also all be released today. The US jobs report will be released tomorrow.
In other markets:
- Spot gold is following the US dollar and is trading higher by $14.20 or 0.75% at $1899.78
- Spot silver is up $0.57 or 2.48% at $23.81
- WTI crude oil futures trading trading down by $0.74 or -1.84% $39.48
In the premarket for US stocks, the futures markets are higher opening on the back of a stimulus deal potential. As a reminder we are now in a new month and believe it or not earnings for the financials for the quarter are just a couple weeks away (JPM and Citigroup both are scheduled to release on October 13). Time sure flies by.
- The Dow Jones is up 245 points
- S&P index is up 31.45 points
- NASDAQ is up 160 points
In the European equity markets, the major indices are trading modestly lower.
- German DAX, +0.15%
- France's CAC, +0.89%
- UK's FTSE 100, 0.52%
- Spain's Ibex, +0.83%
- Italy's FTSE MIB, +0.8%
In the US debt market, the snapshot of yields are higher with the yield curve tilting to the upside. The snapshot currently shows:
In the European debt market, the benchmark 10 year yields are mostly higher with Italy being the only exception. UK yields are up by 3.7%
