The USD is right behind the JPY
The USD is right behind the JPY fighting for the weakest of the major currencies. The EUR and the CHF are the strongest as North American traders enter for the day. Stocks are surging despite more record virus cases. Warren Buffett entered the market with a near $10B investment in natural gas industry. China state owned media spoke of the need to foster a "healthy bull market" in domestic stocks. The Shanghai index rose 5.71%. The PP deadline was extended and Congress debates more stimulus. Risk on.
The ranges and changes are showing EURUSD trading at the highs as NA traders enter extending above last week's highs at 1.1302 in the process. The USDCHF is following a complimentary move for the USD as it trades at session lows and trades to it's lowest level since June 11. The USDJPY has a small 31 pip range and trades near unchanged as flows head into that currency. The JPY crosses are higher with EURJPY, GBPJPY and AUDJPY leading the way.
In other markets:
- Spot gold is up $7.19 or 0.41% at $1779.18
- WTI crude oil futures are trading near unchanged at $40.60.
In the premarket for US stocks the futures are implying sharply higher levels:
- Dow up 440 points
- S&P up 47 points
- NASDAQ index up 148 points
In the European stock markets the major indices are also sharply higher:
- German DAX, +1.8%
- France's CAC, +1.6%
- UK's FTSE 100, +1.7%
- Spain's Ibex, +2.3%
- Italy's FTSE MIB, +1.8%
In the US debt market, yields are higher with the yield curve steepening. The 2 – 10 year spread has risen to 53.34 basis points from 51.6 at the close on Friday.
In the European debt market, yields are mostly lower with the exception of the UK which is a 2 basis point gain in the benchmark 10 year yield.