The NZD is the strongest and the GBP is the weakest as the NA session begins

Technical Analysis

Author: Greg Michalowski | forex

The USD modestly lower

The NZD is the strongest and the GBP is the weakest at the start of the NA session. That was the same order at the start of day yesterday and at the end of day as well. The NZD was the strongest of the majors on Wednesday too.   The USD is weaker vs all the major currencies with the exception of the GBP.  The GBP fell yesterday helped by BOE which was less hawkish than expectations.  The stocks are modestly higher in premarket trading, after yesterday's gains on the back of the agreement on an bi-partisan infrastructure deal, but the chatter that the bill has to pass with an agreement that a 2nd stimulus bill dealing with social infrastruture needs to be approved ahead of the President signing it (from Dem Pelosi and Biden). GOP Senators McConnell, and Graham are saying they will not vote for it and called it extortion.  The warm fuzzy feelings is going away with regard to the deal. Today PCe inflation for May will be released with the deflator increasing by 0.5% versus 0.6% last month. The year on year measure is expected to rise to 3.9% from 3.6%. The core level is expected to rise by 3.4%. Personal income and personal spending will also be released at the bottom of the hour. The University of Michigan sentiment for June (Final) will be released at 10 AM. The preliminary since May came in at 86.4.  Feds Kashkari and
Mester but expected to speak later today.

The USD modestly lower
Looking at the ranges and changes, the price is not great for the day. The largest trading range is 45 pips (GBPUSD) the USDCHF is only 19 pips.  The next highest trading range is 31 pips in the USDCAD.   The GBPJPY is lower. GBPAUD is also trending lower as well (as is GBPNZD not shown). 

The ranges and changes for the major currency pairs
In other markets:
  • Spot gold is trading up $9.87 or 0.55% at $1784.71
  • Spot silver is up $0.21 or 0.83% at $26.11
  • WTI crude oil is trading down -$0.12 or -0.15% at $73.19
  • Bitcoin is down -$1400 or -4.02% at $33448
In the premarket for US stocks, the major indices are higher but off highest pre-market levels
  • Dow is up 115 points after yesterday's three and 22.58 point rise
  • S&P is up up three points after yesterday's record close and gain of 24.65 points
  • NASDAQ index up eight points after yesterday's record close an gain of 97.98 points. The NASDAQ record was the third in a row.
In the European equity markets, the major indices are trading mixed
  • German DAX, -0.1%
  • France's CAC, -0.1%
  • UK's FTSE 100, +0.3%
  • Spain's Ibex, +0.2%
  • Italy's FTSE MIB +0.2%
In the US debt market, the yields are modestly changed with changes less than one basis point:

US yields are mixed
In the European debt market, the benchmark 10 year yields have reversed higher after yesterday's declines. Time yields are leading the way with a 3.2 basis point gain.
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