The USD is mostly/modestly lower
As NA traders enter for the day, the NZD is the strongest of the major currencies. The JPY is weakest. That was the same ranking of the extremes at the close of trading yesterday. In fact. the CHF and USD have the same ranking at the close as well. Despite the same rankings for most of the pairs, the equity markets are not racing higher. The US stock market is mixed after the big move higher yesterday. The European market is lower.
The USD is mostly lower but higher vs the JPY as the flow of funds continue to push the USDJPY and JPY crosses higher. The USDCHF is near unchanged on the day after a big down, up and down day yesterday. The GBPUSD and EURUSD moved higher but has run into some resistance against MA levels. The EURUSD ran into the 100 day MA at 1.09694. The GBPUSD ran into the 200 hour MA at 1.22698.
In other markets:
- Spot gold is trading trading up $1.25 or 0.07% at $1733.76
- WTI crude oil futures for June delivery are trading up $0.57 at $32.39. The June contract settles today. THe July contract is trading up $0.10 or 0.32% at $31.74.
In the premarket for US stocks the futures are implying a lower opening. Walmart reporting better earnings this morning, while Home Depot (also reporting this morning) had a mixed results as they pour more money into safety of employees (Walmart shares are higher, while Home Depot shares are trading lower)
- Dow industrial average is down -30 points
- S&P index is down -5 points
- NASDAQ index is up up 9 point
European shares have given up some of the hefty gains from yesterday's trade when the German DAX rose by 5.6% and the France's CAC rose 5.16% after the German/Franco restructuring plan:
- German DAX, -0.2%
- France's CAC, -0.5%
- UK's FTSE 100, -0.3%
- Spain's Ibex, -1.8%
- Italy's FTSE MIB, -1.5%
In the US debt market, yields are mixed with the 5 year down marginally the 10 year up marginally and the 30 year leading the way with a gain of 2.1%. The yield curve is also continuing its moved to the upside. The 2 – 10 year spread is up another 0.7 basis points 255.5 from 54.85 at the close yesterday..
In the European debt market, the benchmark 10 year yields are mixed with German and UK yields and investors continuing to flock into Spain, Italy and Portugal debt instruments
