The NZD is the strongest and the JPY is the weakest as flows reverse (a little)

Technical Analysis

Author: Greg Michalowski | forex

The strongest and weakest currencies as NA trader enter for the day

As North American traders enter for the day and stocks take a breather as comments from Pres. Trump and China eased some of the fear, the flow of funds in the currency markets have reversed some of the price action yesterday.  Yesterday, the AUD and NZD were the weakest on risk off trades. Today the NZD is the strongest. The JPY was the strongest yesterday with the CHF behind it. Today, the JPY is the weakest followed by the CHF.  However, take note, that the recoveries are only part of the changes from yesterday (as are the changes in the stocks)

The strongest and weakest currencies as NA trader enter for the day
The ranges and changes are showing the JPY pairs recovery. Those pairs are not at the highs, but near the highs as trader enter in North America.  The EURUSD trading range is low at 24 pips, and even though the NZD is the strongest, the range in that pair is only 27 pips. The AUDUSD, which trended lower yesterday, is not exactly racing higher. It still has some anxiety about RBA policy with more issues in China. Remember NZD did cut rates last week, while Australia kept rates steady.

The range and changes of the major currency pair
In other marketsL
  • Spot gold is down -$0.82 or -0.06% at $1299.08
  • WTI crude oil is up $0.77 reversing losses from yesterday at $61.83
  • Bitcoin on Coinbase is trading up $250 and above $8000 at $8124
In the premarket for the US
  • Dow, +127 points
  • S&P, +15.18 points
  • Nasdaq +53 points
In European markets, stocks are higher:
  • Germany, +0.58%
  • France, +1.22%
  • UK +0.96%
  • Spain, +0.64%
  • Italy +0.96%
In the US debt market, the yields have retraced part of the large falls from yesterday (about 5-8 bps):

The US yields have recovered marginally
In Europe, the benchmark 10 year yields are mixed.  Spain and Portugal lost investors in the risk off trade yesterday. Today they have seen yields move back lower on the return of some investors.

The 10 year yields in the Europe

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