The USD is weaker

As North American traders enter for the day - and return from the Martin Luther King holiday, the EUR is the strongest, the JPY is the weakest. The USD is also weaker as traders are in a risk off mode. Stocks are higher. Bond yields are higher as well. Gold is lower.

The USD is weaker

Looking at the ranges and changes, the ranges are mixed relative to their 22 day averages (about a month of trading). The GBPUSD is low relative to its averate at 51 pips vs 125 pip average. The EURUSD range of 63 pips is close to the average at 76 pips. The JPY pairs are all higher which tends to be indicative of risk on flows. The EURJPY is leading the way with a gain of 86 pips with a healthy range of 101 pips.

The ranges and changes for the major currency pairs

In other markets:

  • Spot gold is trading down $-2.45 or -0.14% at $1838.72
  • Spot silver is trading down $0.13 or -0.51% at $25.22
  • WTI crude oil futures for February are trading up $0.15 or 0.29% at $52.51. The March contract is trading up $0.16 or 0.31% at $52.58
  • Bitcoin on Coinbase is trading up $689 and $36,926. The high price reached $37,550. The low price extended to $36,186.26

In the premarket for US stocks, the futures are implying a sharply higher opening, retracing much of declines from Friday's trading:

  • The S&P index up up 29.50 points. The index fell -27.29 points on Friday
  • The Dow industrial average is up 217 points after falling -177.26 points on Friday
  • NASDAQ index is trading up 111 points. The index retraced nearly all of the declines from Friday of -114.138 points

In the European equity markets, the major indices are mostly higher (the Spanish Ibex is an exception) but with mixed/modest gains.

  • German DAX +0.18%
  • France's CAC, +0.1%
  • UK's FTSE 100, +0.1%
  • Spain's Ibex, -0.3%
  • Italy's FTSE MIB, +0.4%

In the US debt market, the yields are higher as positive hopes for Covid vaccination and fiscal stimulus push yields higher. Fed officials also expressed the expectations are rates remain low through the year.

US yields are higher

In the European debt market, the benchmark 10 year yields are mixed with Germany, France, UK modestly higher, while Spain, Italy, Portugal yields are modestly lower.

European yields are mixed