The JPY is the strongest and the CAD is the weakest as NA traders enter

Technical Analysis

Author: Greg Michalowski | forex

The USD is mostly higher

The JPY is the strongest of the major currency while the CAD is the weakest. BOC Wilkins was more dovish in her comments yesterday and that trend for a lower CAD, has continued in trading today.  

The USD is mostly stronger with gains vs all the major currencies with the exception of the JPY. The US Senate passed the HK Human Rights Bill. The bill if signed into law (there is a House version which would need to be melded into a single bill for a final vote and then the Pres. to sign or not sign). The bill - if passed - could anger China of course.  That may contribute to some stock weakness today. The major indices are lower in premarket trading. The JPYs rise may be attributed to some of the flight to safety flows, but the CHF is not really following (as usual).  As a result, it isn't necessarily a full-blown flight into safety/out of risk move.

The USD is mostly higher
The ranges and changes have the USDCAD as the biggest mover (vs the USD). It is trading up 33 pips from the close with a 52 pip trading range.  The EURUSD is trading near the lows for the day but still in a narrow trading range of 26 pips.  Although the JPY is the strongest, it is making its move vs the EUR, GBP and other crosses. The USDJPY is only down -8 pips from the close and mired in an up and down 23 pip range for the day (although most of it is to the downside). 

The ranges and changes for the major currency pairs
In other markets:
  • spot gold is up $1.35 or +0.09% at $1473.85
  • WTI crude oil futures are trading up $0.35 or +0.63% at $55.56
In the premarket for US stocks the futures are implying a lower opening:
  • Dow, -94 points
  • S&P index -9.5 points
  • NASDAQ index -30.5 points
In the European stock markets, the major indices are also trading to the downside
  • German DAX, -0.7%
  • France's CAC, -0.3%
  • UK's FTSE 100, -1%
  • Spain's Ibex, -0.4%
  • Italy's FTSE MIB, unchanged
In the US debt market yields are moving back to the downside with yields down -2.3 bp to -4.0 bps

US yields are lower
In the European debt market, the benchmark 10 year yields are also trending to the downside. France yields are now down at -0.057% and moving further away from the 0.0% level.

European yields are lower
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