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

Technical Analysis

Author: Greg Michalowski | forex

The USD is mixed

As NA traders enter for the day, the EUR is the strongest followed closely by the AUD. The GBP and NZD are the weakest currencies.  That implies a continued rise in the EURGBP (it bottom then rose sharply in trading yesterday). The AUDNZD is also on the move to the upside as well.  The USD is mixed today with gains vs. the GBP, NZD, JPY and CAD and declines vs the EUR, CHF and AUD.  US stocks are rebounding relatively modestly today.   JP Morgan (up 1.76%) and Citicorp (up 1.36%) announced better earnings thanks to higher trading revenues. Wells Fargo (-3.66%) did not beat and slashed dividends to $0.10 from $0.50 as a result.  Each of the banks put aside larger sums for loan loss provisions as they face the prospects from the impact of the coronavirus.  Earnings season is officially underway with the release of some key bank earnings today. Some other key earnings to be announced this week include:

Wednesday, July 15
  • Bank of New York Mellon
  • U.S. Bancorp
  • PNC financial services group
  • Goldman Sachs
  • Alcoa
  • UnitedHealth group
Thursday, July 16
  • Bank of America
  • Charles Schwab Corp. 
  • Morgan Stanley
  • Netflix
  • Johnson & Johnson
  • Domino's Pizza
  • JB Hunt Transport Services
Friday, July 17
  • BlackRock

The USD is mixed
The ranges and changes are showing the up and down mixed conditions in the pairs vs the USD.  The AUDUSD is trading near the highs after trading lower earlier in the session.  The EURGBP and EURJPY are trading higher and near the session highs as well.  The AUDNZD is also near the session high.  Although the EURJPY is higher, the other JPY crosses are showing mixed results. 

The ranges and changes for the major currency pairs
In other markets:
  • Spot gold is trading down $-2.95 or -0.17% at $1799.85
  • WTI crude oil futures are trading down $0.35 or -0.87% at $39.75
In the premarket for US stocks the futures are implying a higher opening after closing at the lows yesterday. The Nasdaq fell by -226 points or -2.13% after making a new all-time high and closing with an outside day, lower close, and the S&P shed -0.94% after trading briefly above unchanged for the year (and failing). 
  • Dow futures are implying a rise of 150 points 
  • S&P futures are implying a rise of 13 points
  • NASDAQ index futures are implying rise of 62 points
In contrast, in the European stock markets the major indices are trading lower
  • German DAX, -1.1%
  • France's CAC, -1.5%
  • UK's FTSE 100, -0.3%
  • Spain's Ibex, -0.6%
  • Italy's FTSE MIB, -0.9%
In the US debt market, yields are modestly higher with the yield curve modestly higher as well:

US yields are higher
In the European debt market, the benchmark 10 year yields are trading mostly lower. The UK yields are trading down the most at -3.2 basis points. Italian yields are up modestly at 0.2 basis points.

The European yields are mostly lower

For bank trade ideas, check out eFX Plus
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