The EUR is the strongest and the AUD is the weakest as NA traders enter for the day

Technical Analysis

Author: Greg Michalowski | forex

The USD is mixed

The EUR is the strongest and the AUD is the weakest as NA traders begin the day. The AUD was the strongest currency over the last two trading days. Today there is a corrective shift in the price action for that currency after an early Asian session run higher reversed (the AUD pairs are near lows).  The USD is trading mixed. The greenback fell but reversed in the London session.   Stocks are higher as the market prepares for the ADP report to be released at 8:15 AM with expectations of -9M jobs (after a 20.23M decline last month) . 

The USD is mixed
Looking at the ranges and the changes, the ups and downs in the market can be seen.  Pairs like the AUDUSD was much higher earlier but has turned negative and is trading near the low. Pairs like the EURUSD and the GBPUSD were also higher and although they remain higher, they trade near the lows.  The NZD and CAD have been strong vs the US over the last few days but has lost some of its earlier session mojo (dollar getting stronger into the NY session). The point is the USD is correcting off lower levels and losing some of the momentum today.

The ranges and changes for the major currency pairs
In other markets:
  • Spot gold is trading down $-2.40 or -0.14% at $1725.28
  • WTI crude oil futures down $0.56 or -1.5% at $36.26. 
In the premarket for the US stocks the futures are continuing the run higher on coronavirus rebound hopes:

  • Dow is up 168 points
  • S&P is up 14 points
  • Nasdaq is up 26 points
In the European equity markets the major indices are also higher. The German DAX continued its run to the upside with a 2% gain:

  • German DAX is up 2.07%
  • France's CAC is up 1.8%
  • UK FTSE, is up 1.0%
  • Spain's Ibex, is up 1.2%
  • Italy's FTSE MIB, up 2.0%
In the US debt market the yields are marginally higher. The 30 year bond yield is up 1.5 basis points.

US yields are marginally higher
In the European debt market, the benchmark 10 year yields are also trading higher with investors shunning Spain, Italy and Portugal debt instruments the most.  Italy's 10 year yield is up 7 basis points, Portugal yields are up 4.3 basis points and Spain yields are up 3.1 basis points.

European benchmark 10 year yields are moving higher with Italy up 7 basis points
ADP report ahead.

Good fortune with your trading.
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