The USD is mostly lower
As North American traders enter for the day, the NZD is the strongest, the GBP is the weakest. The USD is lower. Stocks in the US are trading higher in the pre-market. Yields are lower. The FOMC will announce no change in rates today. Are from any additional surprising stimulus, the market would be focusing on the Fed's expectations going forward. US GDP for the 1st quarter will be released with expectations for -4.0%. Personal consumption is expected to fall by -3.6%. Crude oil inventories and pending home sales will also be released.
The GBPUSD i has the largest trading range at 97 pips as North American traders enter. The price rallied earlier in the Asian session but as since reversed and trades lower. The GBP crosses are also trading at extreme levels (to the downside). The USDJPY is lower but the EURJPY, AUDJPY, NZDJPY, and CADJPY are all trading near unchanged on the day (with very modest trading ranges too). The GBPJPY is the biggest exception as it trades down -78 pips after trading higher earlier in the session.
In other markets:
- Spot gold is up $1.35 or 0.09% at $1709.10
- WTI crude oil is trading higher by $1.89 or 15.4% at $14.25. The July contract is also higher by $1.20 or 6.75% at $18.77. The private data showed a 9.978 million barrel increase in crude oil inventories near the close yesterday (versus 11 million estimate). Gasoline inventories fell by -1.108 million barrels versus +2.7 million estimate. The data will be released at 10:30 AM ET/1430 GMT
- Dow is +190 points
- S&P is +26 points
- Nasdaq is +115 points
- German Dax +0.25%
- France's CAC unchanged
- UKs FTSE +0.8%
- Spain's Ibex +0.8%
- Italy's FTSE MIB +0.2%
In the European debt market, the benchmark 10 year yields are mostly lower with Italian yields in the exception after the downgrade by Fitch at the start of the new trading day.
