The USD is the weakest

As NA traders enter for the day, the NZD is the strongest (the currency was pushed higher on a government surplus for the year), and the GBP is the weakest (Brexit).. The USD is mostly lower with the exception of gains vs the GBP (on the back of negative meetting with Merkel and Johnson) and a small gain vs the CAD (crude is lower by -1.38% currently). China/US are meeting at the end of the week and the optics from both sides are not exactly warm and fuzzy for a deal.

The USD is the weakest

The GBPUSD is the biggest mover of the majors vs the USD (94 pips (around the 22 day average - one month of trading). It is trading near session lows after trending lower in the UK session. The USDJPY and USDCHF are trading near session lows as well. All the GBP pairs are trending (in the negative GBP direction) and have over average trading ranges. It is not a good day for the GBP.

The ranges and changes of the major currency pairs

In other markets at the start of the NY session:

  • Spot gold is up at $10.12 or 0.68% at $1503.70
  • WTI crude oil futures are down $0.72 or -1.38% to $52.03

In the premarket for US stocks, the major indices are lower on the souring US/China premeeting optics:

  • the Dow industrial average is down -170 points
  • the S&P index is down -18.64 points
  • the NASDAQ composite index is down- 47 points

In the European market, the major indices are back lower after a Monday recovery day:

  • Geerman DAX, -1.0%
  • France's CAC, -1.0%
  • UK's FTSE, -0.31%
  • Spain's CAC, -1.0%
  • Italy's FTSE MIB, -1.1%

In the US debt market yields have moved back to the downside on flight to safety flows: The 2-10 yield spread is marginally lower at 9 basis points versus 9.63 basis points at the close yesterday.

The US yields are lower

In the European market, yields mostly lower with the exception of France.

The European yields are mixed.