The USD is a bit stronger
As North American traders ent the the er for the day, the CAD is the strongest while the GBP is the weakest. The Bank of England meeting will be on Thursday and there is 54% chance of a 25 basis point cut. The US dollar is mostly higher with modest gains against all of the major currencies with the exception of the CAD. The markets are taking the coronavirus news in stride today despite a rise in reported infected cases to 4515, and deaths to 106 as of the end of January 27. As a result, there are reversals of the trends over the last few days (i.e., stocks higher, Bond yields higher, gold lower).
The snapshot of the ranges and changes are showing weakness in the GBPUSD. It is trading down 40 pips on the day. Of no however is the other GBP cross pairs are trade more toward the middle of the days trading range. The EURUSD is trading at its lows although with only a 23 pip trading range for the day. The USDJPY and USDCHF are higher as risk aversion flows are being reversed today.
Gold and oil prices are reversing some of the risk aversion trends seen over the last few days:
- spot gold is trading near session lows. It is down $8.30 or -0.52% at $1573.67. The low reached $1571.68. The high extended up to $1583.10
- WTI crude oil futures are up $0.29 or 0.55% at $53.43. The hi reached $53.57 so far today. The low extended to $52.68
In the premarket for US stocks, the futures are implying a higher opening (and has been taking higher in early trading today).
- Dow is now up 140 points
- S&P index is up 18 points
- NASDAQ index is up 73 points
In the European equity markets, indices are also recovering in trading today:
- German DAX, +0.4%
- France's CAC, +0.6%
- UK's FTSE 100, +0.6%
- Spain's Ibex, +0.4%
- Italy's FTSE MIB, +1.14%
In the US debt market, yields are rebounding modestly in early New York trading. The 10 year yield is up 1.4 basis points. The 2-10 year spread is also marginally higher at 18.11 basis points versus 16.71 basis points at the end of the trading yesterday:
In the European debt market you'll changes are mixed. Italian yields are leading the way to the downside at -3.0 basis points, while German and UK yields are marginally higher at 0.7 basis points at 1.9 basis points respectively:
