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

Technical Analysis

Author: Greg Michalowski | am-ex

Some USD short covering ahead of the US NFP

The USD is the strongest and the NZD is the weakest as NA traders enter for the day.  Today is the awaited US (and Canada) jobs reports. There is some short covering in the greenback.   The dollar has been a a downward trend and traders seem to be lightening up pre-report.  In Yields are little changed. Gold and silver are lower as they see some retracement with the US dollars rise.  Premarket futures for US stocks are giving up some of the gains from yesterday.  US job data will be released at the bottom of the hour with expectations for nonfarm payroll of +1.48 million, and the unemployment rate falling to 10.6% from 11.1%. In Canada the net change in employment is expected at 390K with the unemployment rate falling to 11.1% from 12.3%.

Some USD short covering ahead of the US NFP

The snapshot of the ranges and changes show the dollar is trading near its highs for the day vs. the EUR, GBP, CHF, AUD and NZD. The USDJPY is little changed at plus 10 pips. The USDCAD has an oversized range of 88 pips but is off the highs for the day.

The ranges and changes for the major currency pairs

In other markets:
  • spot gold is trading down $11.38 or -0.56% at  $2052.02
  • spot silver is down - $0.87 or -3.02% at $28.04 after oversized gains yesterday
  • WTI crude oil futures are trading down $0.51 or -1.22% at$41.4

In the premarket for US stocks, the futures are implying a lower opening.  Yesterday all indices closed higher. Moreover the S&P and Dow are on a 5 day winning streak. The NASDAQ index has been up for 7 consecutive days. The snapshot of the market currently implies:
  • Dow, -149 points
  • NASDAQ -40 points
  • S&P index, -13 points
In the European equity markets, the major indices are mixed
  • German DAX, +0.1%
  • France's CAC, -0.25%
  • UK's FTSE 100, unchanged
  • Spain's Ibex, -0.9%
  • Italy's FTSE MIB -0.5%
In the US debt market, the yields are down but only marginally (less than 1 basis point across the curve:

US yields are lower
In the European market, the benchmark 10 year yields are modestly higher:

European yields are mostly higher

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