The USD is modestly lower as North American traders enter for the day

As North American traders enter for the day, the CAD is the strongest currency, the AUD is the weakest, but all the changes on the day are moderate. So the order can be shuffled around in the session. The USD is mostly lower with modest declines vs. all the major currencies with the exception of the AUD. In Australia, the headline inflation was a bit light. The core measures were as expected.

EU Juncker will meet with Trump later today on trade. Headlines will be monitored from that meeting. New home sales will be released at 10 AM /1400 GMT with 668K annualized units expected (was 689K last month). The oil inventory data will be released at 10:30 AM ET/1430 GMT. THe private data yesterday showed a drawdown of inventories.

The USDJPY, USDCHF , USDCAD is trading near lows for the day wth the USDCAD down -31 pips in early NA trading (see upper chart below). The low to high trading ranges for all the major currencies are well below the 22 day averages (red line in the lower chart). The EURUSD range is only 29 pips. The AUDUSD had the largest range as it spiked and then tumbled after the CPI data. There is room for extensions today.

In other markets:

  • Spot gold is trading up $8 or 0.65% at $1232.54
  • WTI crude oil is trading at $68.58, up $0.05
  • Bitcoin is taking a breather after a run toward the 200 day MA at $8623.57 stalled. It is down -$26 on the day at $8202. The high reached $8488 before moving back down.

In the US pre-market trading, stock futures are implying a lower opening:

  • The Dow implied to open down -90 points
  • The S&P is down -5 points
  • The Nasdaq is down -1.5 points

Facebook, Ford and Qualcomm will report after the close today with the focus obviously on Facebook. Revenues are expected to rise to $13.35B vs $9.32B last. Earnings are expected to rise to $1.71 vs $1.59.

In the European stocks are lower:

  • German Dax down -0.6%
  • France's CAC -0.1%
  • UKs FTSE -0.8%
  • Spain's Ibex -0.3%
  • Italy's FTSE MIB -0.7%

In the US debt market yields are mixed with the yield curve narrowing:

The 2-10 year spread has narrowed to about 29 bps - 2.5 bps lower than the close from yesterday.

In the European 10 year note market, yields are also lower.