The USD is the strongest and the CAD is the weakest as the NA traders enter for the day

Technical Analysis

Author: Greg Michalowski | forex

Stocks moving lower

The USD is the strongest and the CAD is the weakest as NA traders enter for the day. Stocks are lower as are US yields.  Gold is rebounding after falling earlier and bounciing. Oil is trying to stay above $20 as the Oil war continues between Saudi Arabia and Russia despite the coronavirus demand destroyer. The US says deaths could rise to 100K to 240K from the viurus. Nevertheless, the USD moves higher with the JPY on it's tail.  The AUD is just behind the CAD as the weakest of the majors.

Stocks moving lower
The USDCAD is trending higher. It has moved higher from the start and is up 172 pips in the morning snapshot. The AUDUSD did trade a little higher in the early Asian session before it started to trend lower. It is trading near it's low (higher USD).  Apart from the USDCAD with a 211 pip range, the other trading ranges are below the 22 day averages with the USDJPY and USDCHF ranges more modest at 68 and 71 pips. JPY crosses area all lower with the EURJPY, AUDJPY, NZDJPY and CADJPY all trading near the lows for the day. 

The ranges and changes for the major currency pairs
In other markets:
  • Spot gold is trading up $8.11 or 0.51% at $1585.29
  • WTI crude oil futures are trading down $0.17 -0.83% at $20.31
In the premarket for US stocks, the futures are implying lower openings

  • S&P index -100 points
  • NASDAQ index -263 points
  • Dow -845 points
In the European equity markets the major indices are down sharply:
  • German DAX -4%
  • France's CAC -4%
  • UK's FTSE 100 -3.7%
  • Spain's Ibex -2.17%
  • Italy's FTSE MIB -2.1%
In the US debt market the snapshot, of yields is showing lower levels with the yield curve flattening.  The 2-10 year yield spread has moved down to 36.72 basis points from 42.4 basis points at the close yesterday.

US yields are lower
In the European debt market, the benchmark 10 year yields are mixed with Germany and UK yields lower while Italy, Spain, Portugal, and France are a higher in the morning snapshot:

European yields are mixed
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