The USD is stronger reversing some of the declines from yesterday
As North American traders enter for the day, the CHF is the strongest and the GBP is the weakest. The USD is mostly higher and retraces at lease some of the declines from yesterday's trading. The GBPUSD has just moved back below it's 200 hour MA at 1.33457 after the volatile up, down and up again day yesterday saw the pair rise to the highest level since September 1 (which was the high for the year). The news out of Brexit was mostly discouraging with Barnier telling a EU envoy that 3 main issues still unresolved and that the budget deal still hangs in balance. Good news out of the UK was at the approved for distribution the Pfizer Covid vaccine. The EURUSD today first moved higher to test the swing high going back to January 2018 at 1.20884 (the high reached 1.2087 today), but reversed and is also trading at lows for the day at 1.2042.
Looking at the ranges and changes the CHF pairs are trading at CHF high extremes. The GBP pairs are also trading at extremes (GBP lower) and the USD pairs are mostly all at higher extremes with the exception being the USDCHF where the USD is lower (the CHF is higher). With that view, something has to be mixed up and the JPY pairs are mixed up with the GBPJPY sharply lower, while the EURJPY is midrange but higher, the NZDJPY is now lower after trading higher, but the AUDJPY is still higher.
In other markets,
- spot gold is trading up $4.22 or 0.23% at $1819.62. That is near midrange for the day. The high price reached $1832.56, while the low extended to $1807.54.
- Spot silver is trading down $0.10 of -0.44% $23.90. It's high price reached $24.32. While the low price extended to $23.54.
- WTI crude oil futures are trading near unchanged $44.52
- Bitcoin on Coinbase is trading down $116 at $18,940.95. The high price for the day reach $19,340. The low price extended to $18,335.
In the premarket for US stocks, the futures for the major indices are implying a lower opening
- Dow industrial average futures are implying a fall of -136 points
- NASDAQ futures are implying a fall of -45 points
- S&P futures are implying a fall of -12 points.
In the European equity markets the major indexes are mostly lower:
- German DAX, -0.6%
- France's CAC, -0.4%
- UK's FTSE 100, +0.15%
- Spain's Ibex, unchanged
- Italy's FTSE MIB, -1%
In the US debt market, yields are marginally lower after the sharp rise seen yesterday:
In the European debt market, the benchmark 10 year yields are mixed but little changed with a change is less than 1 basis point across the spectrum of different countries.
The ADP employment change will be released at 8:15 AM ET. It will give a snapshot of the employment report due on Friday. The expectations are for a gain of 430K vs. 365K last month
