The USD is back higher today
The market took a turn toward earnings after China tech firm Tencent reported disappointing earnings. Turkey doubled tariffs on US cigarettes, cars and alcohol (ouch). The turkish lira actually is higher today as they fight vs give in. The result is the flight to safety trade is on with the JPY and the USD as the strongest currencies, while the CAD is the weakest.
The ranges are steady, but moderate with a session left in the day. The major currency pairs are below their 22-day averages (red line in the lower chart). The USDCAD is the farthest away from the unchanged line at up 43 pips. At the low the USDCAD bounced off its 200 hour MA (in the Asian session). It has marched higher since that hold. The USDJPY was higher earlier but as the stock fall accelerated, it started to see more selling.
- Spot gold is down $-7.50 or -0.63% at $1186.64. The price remains sensitive to the dollars moves. Dollar up, gold down.
- WTI crude oil is don -$0.70 or -1.02% at $66.35
- Bitcoin is rebounding in trading today. at up about $240
Premarket in the US, stock futures are implying lower openings:
- Dow down -147 points
- S&P down -15.5 points
- Nasdaq down -58 points
IN the US debt market yields are lower on flight to safety and lower growth concerns:
- 2 year 2.620%, -1.6 bps
- 5 year 2.743%, -2.9 bps
- 10 year 2.867%, down -3.0 bps
- 30 year 3.039%, -2.8 bps
US retail sales, unit labor costs/productivity, and empire manufacturing data will be released at the bottom of the hour. The advanced retail sales are expected to show a 0.1% gain with the control group up 0.4%. Productivity is expected up 2.4% with 0.0% unit labor costs. Empire manufacturing is expected at 20.0 vs 22.6 last.
