The USD is mixed ahead of the PPI and Initial claims data

The CHF is the strongest and the AUD is the weakest as NA traders enter for the day. The USD is mixed ahead of the US PPI data and the weekly initial and continuing claims. Fed's Barkin is on the schedule to be speaking after the surprise CPI yesterday. The US treasury will complete its refunding auctions today by auctioning off $27B of 30 year bonds. Yesterday they were successful in the auction of 10 year notes with strong demand for that issue (although the yield did close higher on the day by a basis point or so). Yields are trading near unchanged this morning as is gold. Bitcoin and Ethereum are both sharply lower (down by about -8%). Oil is lower by over -2% and stocks are mixed with the Dow down leading the way.

The USD is mixed ahead of the PPI and Initial claims data

The ranges and changes show the major currencies vs the US all trading within 21 pips of unchanged with ranges above and below unchanged for most pairs (the exception is the USDCHF which has need choppy trading mostly below the close level (which was near highs yesterday). The USD was the runaway strongest currency after the stronger than expected jobs report yesterday.

The ranges and changes for the major currency pairs

In other markets:

  • Spot gold is trading up $1.50 or 0.09% at $1817
  • spot silver is down three cents or -0.14% at $26.98
  • WTI crude oil futures are trading down $-1.44 or -2.16% at $64.65
  • bitcoin is down $4300 or 7.9% at $50,180
  • Ethereum is lower by $349 or 8.52% at $3752
The major US indices futures are rejecting a mixed opening for the stocks today:

  • S&P index +3.51 points. It fell -89.06 points yesterday
  • NASDAQ index is up 70 points after the -357.75 point tumble yesterday
  • Dow is down -60 points after a -681.50 decline yesterday

In European equity markets, they are in the red across the board:

  • German DAX -0.76%
  • France's CAC, -0.8%
  • UK FTSE 100 -1.6%
  • Spain's Ibex, -1.6%
  • Italy's FTSE MIB -0.8%

in the US debt market, the yields are down marginally with the 30 year year yield down -1.2 basis points ahead of the auction later today. The yield curve is relatively flat however with the 2– 10 year spread trading at 152.52 basis points versus yesterday's closing level of 152.87.

US yields are lower

In Europe, the benchmark 10 year yields are trading higher. The German 10 year is within 10 basis points of unchanged. France's 10 yield is positive by 0.286%.

European yields are mostly higher