The GBP is the strongest and the JPY is the weakest as the week kicks off in NA

Technical Analysis

Author: Greg Michalowski | forex

The USD is mostly lower

As the new week gets underway in North America, the GBP is the strongest and the JPY is the weakest.  The GBP Brexit drama continues with a lot of uncertainty. There will be more indicative votes later today.  However, traders are ignoring the negative, and moviing the GBP higher.  Helping was the UK Manufacturing PMI which surged to 55.1 from 52.1 previously (and 51.2 est - mostly on stockpiling).  The JPY is the weakest as stocks surge. The China manufacturing data played a role in that move higher.  The USD is mostly lower with gains vs JPY and CAD, and declines vs AUD, NZD, GBP and EUR.  The greenback is little changed vs the CHF.

The USD is mostly lower. THe GBP is the strongest.
The GBP ranges are outpacing the other pairs and trading near extremes for the day. THe other pairs vs the USD have lower ranges with the USDJPY range of 38 pips the largest (not a lot of movement.

The ranges and changes for the major currency pairs

In other markets, the early NY snapshot is showing:
  • Spot gold, -$0.41 or -0.03% at $1291.89
  • WTI crude oil is up $0.66 or 1.10% at $60.80
In the premarket for US stocks, futures are implying a stronger opening:
  • Dow, up 208
  • S&P, 21 points
  • Nasdaq up 71 points
Europe is also riding the wave from the China data and are higher:
  • German DAX, +0.65%
  • France's CAC, +0.74%
  • UK's FTSE, +0.37%
  • Spain's Ibex, +0.51%
  • Italy's FTSE MIB +0.70%
In the US debt market, yields are moving higher:

US yields are moving higher
In the European debt market, 10 year yields are also moving higher today. The German 10 year yield, however, still remains below the 0.0% line at -0.04%.

The benchmark 10 year yields in Europe are higherUS retail sales data to help kick off North American trading, followed by Markit PMI, ISM manufacturing data, construction spending and business inventories.  Then the focus will turn back to Westminster where we'll see another round of indicative votes in the evening
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