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

Technical Analysis

Author: Greg Michalowski | forex

The USD is modestly higher

As North American traders enter for the day the JPY is the strongest and the EUR is the weakest. However, take note that the different currencies are relatively bunched together. That is there is no clear winner in the race for the strongest and weakest. The market is unsure. The market is waiting for the next shove. With Mnuchin and Powell scheduled to testify on Capitol Hill on the economy (at 10:30 AM ET) that certainly is an event that could give a shove one way or the other.   In other news today, Boris Johnson announced new measures to combat a 2nd wave of the coronavirus. US existing home sales will also be released.  The US dollar is modestly higher in early North American trading with small gains vs. EUR, GBP, CHF, CAD, AUD, and losses vs the JPY. The greenback is unchanged vs. the NZD. 

The USD is modestly higher_
The GBP has the largest of the trading ranges although has had a down and back up trading day. It is currently up only 7 pips on the day.  The other pairs vs USD have seen similar down and up (or up and down) trading price action.  The USDCAD, USDCHF, AUDUSD, NZDUSD and GBPUSD are all trading within 8 pips of unchanged for the day. The EURUSD is the farthest away from unchanged at -19 pips. The USDJPY is -14 pips.  The EURJPY is the pair which has the largest move from the close yesterday at -37 pips. The overall ranges are actually pretty good but the up and down nature of the market implies uncertainty. Him

The ranges and changes for the major currency pairs In other markets:
  • Spot gold is down $4.39 or -0.23% at $1908.10.
  • Spot silver is down $0.54 or -2.22% at $24.16
  • WTI crude oil futures are up $0.11 or 0.28% $39.42
In the premarket for US stocks, the futures are implying a mixed opening:
  • Dow, -56 points
  • S&P index unchanged
  • NASDAQ index +36 points.
In the European equity markets, the major indices are mostly higher with the exception of the Spanish Ibex:
  • German DAX, +0.76%
  • France's CAC, +0.2%
  • UK's FTSE 100, +0.28%
  • Spain's Ibex, -0.28%
  • Italy's FTSE MIB, +0.7%
In the US debt market, the yield curve is showing very modest gains or losses. The 2 year yield is down -0.2 basis points, while the 10 year yield is up a modest 0.3 basis points.
US yields are mixed
In the European debt market, the benchmark 10 year yields are mixed with Spain and Italy yields lower while Germany, France, and the UK are higher
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