Risk on flows
As North American traders enter for the day, the NZD is the strongest. The JPY is the weakest. Risk on flows are in force as the week clock ticks to a close. Stocks are supporting the flows with US futures pointing to a strong opening. Powell talked about signs pointing to more productivity which is a good thing for GDP. Yesterday, the long awaited GDP showed a strong gain in business investment which often translates into productivity gains.
The changes and ranges are showing moderate activity. The USDJPY is pushing higher and trades near the highs for the day (as are most of the JPY crosses). The USDCAD is trading near the lows (been consolidating over the last 5-6 hours though). The GBPUSD moved lower but is trying to bottom after testing its 100 hour MA at 1.32315. Trades at 1.3241 currently.
A snapshot of other markets are showing:
- Spot gold is down -$6.19 or -0.47% at $1307.12
- WTI crude oil is trading up $0.26 or 0.45% at $57.48
The pre-market stock futures point to a higher opening.
- Dow, +177
- S&P, +17.25
- Nasdaq, +51 points
In Europe, shares are higher as well.
- German Dax, up 1.2%
- France's CAC up 0.68%
- UK FTSE, up 0.60%
- Spain's Ibex, up 0.66%
- Italy's FTSE MIB, up 0.46%
In the US debt market, yields are higher. Yesterday at this time they were down on the day, but closed higher after better GDP data. Today, the yields are up 1.8 to 2.5 additional bps.
European 10 year yields are also higher. German 10 years are even pushing 0.20%. The threat of going to 0.00% have been thwarted.
