The USD is stronger to start the session
As the North American session begins, the JPY is the strongest while the AUD is the weakest of the major currencies. The USD is trading higher after Powell reiterated that the Fed is not ready any time soon to change policy and Biden proposed a $1.9T stimulus package including upping the direct payment to qualified individuals to $2000, providing relief for state and local and funding for the covid relief measures. Today, there is a slew of economic data highlighted by PPI and Retail sales at 8:30 AM ET. Stocks are mixed and yields are lower.
Looking at the ranges and changes, the USDJPY and USDCHF are little changed, but the other pairs vs. the greenback are near high dollar extremes led by the USDCAD at up 71 pips and the GBPUSD at -66 pips (higher USD for both of course). The AUDUSD, NZDUSD and EURUSD are all just off their extreme levels. The trading ranges are fairly decent and trend-like especially the USDCAD, AUDUSD and NZDUSD.
In other markets:
- Spot gold is trading up the $1.50 or 0.08% at $1848.04
- Spot silver is trading down $0.20 of -0.81% at $25.31
- WTI crude oil futures are trading down $0.54 or -1.01% at $53.03
- Bitcoin on Coinbase is trading down $1423 and $37,325. The high price reached $39,697 after surpassing $40,000 intraday yesterday. The low price extended to $37,146.46. The prices near the low for the day
In the premarket for US stocks, the futures are implying a mixed opening
- S&P index down -8 points
- Dow industrial average down -101 points
- NASDAQ index is trading up 16 points
In the European equity markets, the major indices are trading lower across the board minus plus
- German DAX -0.8%
- France's CAC, -1.0%
- UK's FTSE 100, -0.7%
- Spain's Ibex, -0.8%
- Italy's FTSE MIB, -0.3%
In the US debt market, the yields are down across the board with a decline in the 2-10 year spread to 96.14 basis points from 99.02 basis points at the close yesterday
In the European debt market, the benchmark 10 year yields are mixed with Germany, France, UK up modestly, while Spain, Italy, Portugal yields are lower.
