The USD is weaker

As North American traders enter for the day, the snapshot of the stronger and weaker currencies shows the CHF is the strongest, while the AUD is the weakest. Stocks are getting hit across the board in Europe and in the pre-market trading in the US, helping the flow into the CHF. The USD is right behind the AUD as weakest currency after bouncing higher yesterday (and in the early Asian-Pacific trading).

German inflation came out weaker at -0.7% MoM and 1.6% YoY. EU flash GDP came in up 0.6% which was the estimate.

The ranges and changes are showing up and down markets. The JPY cross pairs are mixed. A lot of times, they get hit when stocks suffer but with the USD weak, they are not tumbling. The GBPJPY and EURJPY are higher after being lower earlier. The volatility - as expressed from the ranges - is somewhat robust. Most of the pairs have reached their 22-day average range with the NY session to go. However, so far the volatility is not trending but from up and down activity.

Stocks are lower. Amazon, JP Morgan and Berkshire Hathoway announce a joint venture in an attempt to lower healthcare costs for employees. The initial focus will be on a technology solution to provide healthcare at a reasonable cost, but other details are somewhat sketchy and it is at the planning stages. That has health and insurance company stocks falling and it is dragging other company stocks lower too:

  • The German Dax is down -0.47%
  • The UK FTSE is down -0.58
  • The French CAC is lower by -0.37%.
  • S&P futures are down -12 points or -0.42%
  • Nasdaq futures are lower by -31 points or -0.44%
  • Dow futures are lower by -204 points or -0.77%

In other markets:

  • Spot gold is up $3.30 on the dollar fall
  • WTI crude oil is down -$0.61 ore -0.93% at $64.93
  • Bitcoin is down $-382 and below the 100 day MA at $11,386. The current price is at $10,862.
  • US yields are a little higher: 2 year 2.1223%, up 0.6 bp. 10 year 2.708%, up 1.5 bp. 30 year 2.956%, up 1.4 bp.

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