The USD is leaning lower after running higher over the last week

The GBP is the strongest and the AUD is the weakest as NA traders enter for the day. The USD is leaning to the downside after running higher over the last week of trading (the DXY index closed at the highest level since July 2020 yesterday). The dollar did move to a new high earlier today, but is seeing sellers of the greenback in the European session.

Pres. Biden said he would announce by the end of the week his choice for Fed Chair.

UK inflation came in higher than expectations at 4.2% for the headline (vs 3.9% estimate) and core at 3.4% vs 3.1% estimate. The numbers were the highest in 10 years and has helped to push the GBPUSD back toward its 200 hour mA at 1.3460. The BOE is more in play for a December rate hike.

EU final inflation at 4.1% was about as expected and the same as the preliminary reading. That is still up and equal to the highest level since August 2008. The core CPI came in at 2.0% a bit less than the 2.1% estimate.

Today, Canada CPI will be released at 8:30 AM ET/1330 GMT. US stocks are little changed. US yields are modestly higher. The US housing starts and building permits will also be released at 8:30 AM ET/1330 GMT. The price of crude oil is lower ahead of the inventory data later today. The private data released late yesterday showed crude inventories up 655M vs 1.4MM estimate. Lots of Fed speak with Williams, Bowman, Daly, Waller, Evans, Bostic all scheduled to talk.

The USD is leaning lower after running higher over the last week

In other markets as the US traders enter for the day shows:

  • Spot gold is rebounding after yesterday's modest declines and is trading up $13.63 or 0.73% at $1863.20.
  • Spot silver is recovering its losses from yesterday and trades up $0.30 or 1.23% at $25.12
  • Crude oil is trading at $80.20. That's down about $0.42
  • Bitcoin is trading just above the 60,000 level at $60,594 modestly higher from yesterday

in the premarket for US stocks, the futures are currently implying a mixed opening with the:

  • Dow industrial average -20.22 points after yesterday's 54.77 point rise
  • S&P index is up 0.5 points. Yesterday the index rose 18.10 points but fell just short of a all time record close (less than one point from a new record).
  • NASDAQ index is up 21 points. Yesterday the index rose 120.01 points. It closed yesterday about 0.3% from its all-time high close.

In the European equity markets, the German DAX and France CAC what are modestly. Yesterday, both indices close at record levels.

  • German DAX, +0.1%
  • France's CAC, +0.1%
  • UK's FTSE 100 -0.32%
  • Spain's Ibex, -0.2%
  • Italy's FTSE MIB, unchanged

In the US debt market, the 30 year yield is up 1.4 basis points ahead of the 20 year auction at 1 PM today. The 10 year yield is up 0.3 basis points:

US yields are mixed

In the European debt market, the benchmark 10 year yields are modestly higher mostly with the exception being the UK yield at -0.4 basis points.

European yields are mixed