The forex market is still asleep

ZZZZZZ. Wake up!

As the North American session begins, the CAD is the strongest and the USD is the weakest, BUT....the markets are virtually asleep with narrow ranges and the strongest to the weakest of the major currencies all scrunched together. The markets may be waiting for the shove in the form of the CPI data tomorrow. It might be the FOMC meeting next week. Today with the Bank of Canada decision looming there may be a catalyst for a move in that currency. Other than that, the US will release wholesale inventory data, weekly oil inventory data and auction off a 10 year note at 1 PM ET. Pres. Biden is heading to London ahead of the G7 meetings later this week.

The forex market is still asleep

In the stock market, Gamestop will release earnings after the close where they are expecting to post a loss of -$0.84 on $1.2B of revenue. The stock closed at $300.00 on the nose yesterday. HMMMMM.

Game stop

Looking at the ranges and changes, the lack of the volatility is evident with the GBPUSD and USDCAD leading the way with a low to high trading range of 43 and 40 pips respectively. Those are still well below their 22 day averages (about a month of trading) of 83 pips and 69 pips respectively. As for the other major currencies against the US dollar, the high to low trading ranges are all less than 24 pips with the lowest range being 18 pips for the USDCHF. Admittedly, the dollar is lower against all the majors with the USDCAD down 28 pips ahead of the Bank of Canada rate decision later this morning (for Adam's preview click here).

The ranges and changes

In other markets:

  • Spot gold is trading down $1.69 or -0.09% at $1891.10.
  • Spot silver is up six cents or 0.24% $27.68
  • WTI crude oil futures are up $0.33 or 0.47% and trading above the $70 level at $70.39. The high price reached $70.62. The low price dipped briefly below the $70 level to $69.95
  • Bitcoin is rebounding by $1600 or 4.7% to $35,230. The low price reached $32,408.53. The high price extended to $35,435.44. Yesterday the price dipped to around $31,000 before rebounding.

In the premarket for US stocks, the major indices are trading with modest gains (according to their futures prices)

  • S&P index up 8 points and looking to break the all-time high close of 4232.60 today
  • NASDAQ index is up 45 points after yesterday's 43.19 point gain
  • Dow industrial average is up 12 points after yesterday's -30.42 point decline

the European equity markets, major indices are lower:

  • German DAX, -0.5%
  • France's CAC, -0.1%
  • UK's FTSE 100, -0.5%
  • Spain's Ibex, -0.1%
  • Italy's FTSE MIB, -0.3%

In the US debt market, the yields are lower again with the 10 year yield down -3.4 basis points and trades just below the 1.500% level. The 30 year yield is down -3.7 basis points. The 2-10 year spread is down to 135.04 from 138.23 at the close yesterday. The U.S. Treasury will auction off

US yields are lower

In the European debt market, yields are lower as well. France 10 year yields move to a low of 0.107% as it gets closer to the 0.0% level again.

European yields are lower