The USD is the strongest. The JPY is the weakest
As the NA traders enter for the trading day, the USD is the strongest (it was the strongest yesterday too) and the JPY is the weakest.
The June rate hike is coming, bond yields are a touch higher, stocks are higher in Europe and expected to open a bit higher in the US as well. Technically, the dollar has benefited as well. The USDJPY pushed above its 100 day MA yesterday afternoon - tested and stayed above that MA in the new trading day. The USDCHF - which has moved 180 pips higher in the first two days of the week - broke above it's 200 day MA yesterday at 0.9953, broke through the parity level, and is now up testing its 100 day MA at 1.0042. Both are showing a 0.50% gain on the day.
The volatility is mixed with the EURUSD, GBPUSD and USDCAD lagging. The USDJPY, USDCHF and AUDUSD are the leaders for traders today. In Australia retail sales fell -0.1% vs a 0.3% estimate. That has pushed the AUDUSD to the another new low since January 9th. The price is off the lows, however.
In other markets.
- WTI Crude is trading down -$0.17 to $46.26
- Spot gold is trading down -$3 to 1223.15
- Dow futures are up 39. Nasdaq futures are up 7.75 points. S&P futures are up 3.25 points
- US bond yields are up about 0.3-0.5 bp (so up a touch) in quiet trading so far.
