The USD is mixed
The GBP is the strongest of the major currencies and the JPY is the weakest as the NA session begins. The JPY was also the runaway weakest yesterday. The USDJPY has only the September 2018 high at 114.54 before it trades at the highest level since November 2017 (trades at 114.31). The GBPJPY is trading at it's highest level since 2016 and the CADJPY since 2015. The USD is mixed with an equal gain of 0.56% vs the JPY as it's loss vs the GBP (-0.56%). The greenback is little changed vs the EUR, CHF, CAD and AUD. Investors are in love with US stocks again with premarket gains building on the solid gains from yesterday (1.5% to 1.75%). The S&P index moved back above its 50 day MA yesterday (at 4436.51). US yields are higher in pre-market trading. There are more rumblings lately about the Fed being behind the curve not just in taper but in tightening. Retail sales and Michigan sentiment is on the schedule for today.
In other markets as US traders enter for the day are showing:
- Spot gold it is down $-17.21 or -0.96% at $1778.05. Yesterday the precious metal tested the $1800 level but backed off.
- Spot silver is down $0.29 or -1.24% at $23.21
- WTI crude oil futures are trading up $0.79 or 0.97% $82.10, The high today and $82.30 took out the high from Tuesday and trades at yet another new high going back to 2014.
- Bitcoin is trading up $2000 or 3.51% $59,386. A report that the SEC is looking to approve bitcoin ETF's is pushing the digital currency toward record levels. It traded to a high of $60,000 even before backing off modestly. The all-time high is near $64,895.
In the premarket for US stocks, the major indices are trading higher after the solid gains yesterday:
- Dow industrial average +175 points after yesterday's gain of 534.75 points
- S&P index +18.5 points after yesterday's gain of 74.46 points. The gain yesterday was the largest in seven months (+1.71%)
- NASDAQ index up 50 points after yesterday's gain of 251.79 points
In the European equity markets, the major indices are also higher after rising yesterday yesterday:
- German DAX, +0.35%
- France's CAC +0.35%
- UK's FTSE 100 +0.2%
- Spain's Ibex +0.35%
- Italy's FTSE MIB +0.4%
In the US debt market, the 10 and 30 year yields are up 2.3 basis points. The five year is up 2.0 basis points to 1.0699%.
In the European debt market, the France yield is down -4.0 basis points but other yields are higher with the German yield up 1.1 basis points at -0.174%. It got within about 8 basis points of parity earlier this week.
