Concerns about less stimulus
The USD is the strongest and the NZD is the weakest of the major currencies as North American trader enter for the day. The markets are digesting the prospects of impeachment proceedings against Pres. Trump and it's potential impact on stimulus measures should more bipartisan tensions increase. The dollar is also being supported by rising yields that saw the 10 year rise over 1.1% last week. Today. the 10 year yield is down modestly but remains around the 1.10% levels. Stocks are lower today as is the price of Bitcoin which is traded with a $32,000 handle after trading close to $42,000 on Friday.
Looking at the ranges and changes, there is good price action with a number of the major currencies having low to high trading ranges over their 22 day average ranges (or close to it) with the NY session ahead. The dollar is near the highs vs all the major currencies. The JPY pairs are lower and nearer lows. The JPY pairs tend to move lower with uncertainty and lower equities on flights into the "relative safety of the JPY".
IN other markets:
- Spot gold is trading down $-12 or -0.65% at $1837.20
- Spot silver is trading down $0.68 or -2.71% at $24.71
- WTI crude oil futures are trading down $0.43 wanted 0.82% of $51.80
- Bitcoin on Coinbase is trading down $3878 and $34100
In the premarket for US stocks, the futures are implying lower levels:
- S&P index -23.68 points
- Dow industrial average -226 points
- NASDAQ index down -78 points
In the European equity markets, the major indices are also trading down on the day:
- German DAX -0.9%
- France's CAC, -0.65%
- UK's FTSE 100, -0.7%
- Spain's Ibex, -0.2%
- Italy's FTSE MIB, -0.5%
In the US debt market, the yields are marginally lower after last week's run up. The 2-10 year spread moved down marginally to 97.39 basis points from 98.24 basis points last Friday:
In the European benchmark 10 year yields are mixed but little changed from country to country.