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

Technical Analysis

Author: Greg Michalowski | forex

The USD is marginally lower

The GBP is the strongest and the JPY is the weakest.  The GBP has been the biggest mover but relative to other days, the action in the forex is pretty tame.   The USD is mostly lower vs the major pairs by apart from the USDs -0.28% decline vs the GBP, the pair has moved 0.12% or less vs the other currency pairs.   Traders will be looking for initial jobless claims to potentially use the market one way the other. Recall claims rose by greater than expected 1427K last week  (whiile the NFP report was showing stronger numbers).  This week the the expectations are for 1375K.   

The USD is marginally lower
The ranges reflect the limited price action in the forex market today. Looking at the lower chart below, the high to low trading ranges are well below the 22 day averages. Versus the USD, the GBPUSD 65 pip range and the 55 pip trading range in the EURUSD are ok (although still well below the 22 day average - red line), but the USDJPY at 22 pips, the USDCHF at 31 pips  THe AUDUSD and NZDUSD at 31 and 30 pips are really low.  The EURUSD, USDJPY, USDCHF, AUDUSD and NZDUSD are all trading within 9 pips of unchanged in the morning snapshot. 

The ranges and changes of the major currencies
In other markets:
  • Spot gold it is trading near unchanged at plus $0.40 or 0.02% at $1809.30. The index reached another new hi going back to 2011 yesterday. The index traded size of $1816.15 today as investors continue to look toward the precious metal is a safe haven.
  • WTI crude oil futures trading down $0.12 or -0.29% at $40.78 for the August contract. The high price extended to $40.99. The low price fell to $40.61 in very quiet trading (only a $0.38 trading range).
In the premarket for US stocks the futures are implying mixed levels with the NASDAQ once again leading the way
  • Dow futures are implying a decline of -25 points
  • S&P futures are implying a gain of 3.8 points
  • NASDAQ index futures are implying a 53 point gain
In the European stock markets the major indices are mixed. SAP has helped the DAX move higher. The FTSE 100 is lagging as a result of the stronger pound:
  • German DAX, +1.4%
  • France's CAC, +0.19%
  • UK's FTSE 100, -0.5%
  • Spain's Ibex, -0.14%
  • Italy's FTSE MIB, -0.58%
In the US debt market, yields are modestly lower. The yield curve is also modestly flatter by about 1.5 bps:

The US yields are marginally lower with the yield curve marginally flatter
In the European debt market, the benchmark 10 year yields are mixed but little change compared to the close from yesterday:

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