The CAD is the strongest and the JPY is the weakest as NA traders enter for the day

Technical Analysis

Author: Greg Michalowski | forex

The USD is weaker today

As NA traders enter for the day, the CAD is the strongest, the JPY is the weakest. The USD is weaker with declines against most currencies with the exception of the JPY.  In Europe, the German ZEW index rose to a 16 year high, but current conditions worsened. UK jobs saw -220K jobs lost over the 3 months through May which was the worst since 2009.  Pres. Trump says he is considering a capital gains cut as it "creates jobs" and an income tax cut for middle America. Meanwhile the Dems and GOP (led by Mnuchin and Meadows) are expected to restart meetings. 

The USD is weaker today
The USD is near low levels vs all the major pairs with the exception of the JPY where it is near unchanged. The USDCAD has a above average range of 89 pips and is trading down -65 pips.  The USDJPY range is confined as the JPY is ghosting the USDs move vs other currencies. 

The ranges and changes for the major currency pairs
In other markets:
  • Spot gold is trading down $49 or -2.43% of $1977.97
  • spot silver is also down sharply at $-1.33 or -4.58% at $27.80
  • WTI crude oil futures are trading up $0.77 or 1.84% at $42.71
In the premarket for US stocks the Dow industrial average continues to lead the way to the upside. Financials are rising smartly in premarket trading. The NASDAQ is little changed:
  • Dow, +292 points
  • S&P index, +18 points 
  • NASDAQ +2 points
In the European equity markets major indices are solidly higher 
  • German DAX, +2.2%
  • France's CAC, +2.6%
  • UK's FTSE 100, +1.98%
  • Spain's Ibex, +2.8%
  • Italy's FTSE MIB, +1.99%
In the US debt market, yields are higher with the 10 an 30 year up 3.8 basis points. The yield curve is steep by a couple basis points:

US yields are higher
In the European debt market, the benchmark 10 year yields are also rising with the UK 10 year leading the way at +5.0 basis points:

European yields are mostly higher For bank trade ideas, check out eFX Plus
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