USD is stronger
The CAD is the strongest currency. The AUD is the weakest as NA traders enter for the day. Canada was closed yesterday in observance of Victoria Day. At the end of last week, the CAD received a boost after Pres Trump announced tariffs on steel and aluminum would end, paving the way for a USMCA final signing. That tailwind may be helping the loonie today. In Australia RBAs Lowe was more dovish and keeps the door wide open for a cut at their June 4th meeting. The USD is stronger today. The EUR has elections later in the week. In the UK there is little cooperation politically (PM May will speak later today. PS the CBI orders were weaker). Stocks are higher in premarket trading on the Huawei news which is helping the USDJPY march higher.
Looking at the ranges and changes, the AUDUSD leading the way with a 59 pip trading rannge. The pair is trading near the lows. The NZDUSD is beling dragged down as well. The EURUSD is trading near lows in the morning snapshot, but the trading range is only 30 pips. Yesterday, the entire range for the EURUSD was only 24 pips. So activity is low in that pair.
In other markets, the snapshot is showing:
- spot gold is down $5.90 or -0.46% in $1271.83
- WTI crude oil futures are up $.30 or 0.48% at $63.40
In the pre market for US stocks, futures are applying higher levels after the Huawei concessions:
- Dow, +134
- NASDAQ +49
- S&P index +16.5
in European markets, they too have rebounded after yesterday's sharp decline:
- German DAX, +0.95%
- France's CAC, +0.5%
- Britain's FTSE, +0.54%
- Spain's Ibex, +0.4%
- Italy's FTSE MIB, +0.65%
In the US debt market, yields are trading higher with the easing of the "risk off" bias due to the higher stock prices today:
The benchmark 10 year note yields in Europe are mixed with the "safer" countries showing higher gains (on risk on sentiment), while the riskier countries, moving lower on increased investor demand (Spain, Italy and Portugal)
