The JPY is the strongest and the NZD is the weakest as NA traders enter

Technical Analysis

Author: Greg Michalowski | forex

The USD is mixed

As the markets digest the recent news that UK PM Johnson has tested positive for the coronavirus, the JPY is the strongest and the NZD is the weakest in the morning snapshot. The GBP is mixed as is the USD in early North American trading.  Stocks are set to open lower breaking the string of 3 days of gains in the Dow and S&P which propelled the major indices around 20% of the recent lows. The EUR is lower as the EU struggles with measures to support their economy.  It is month end.

The USD is mixed
The ranges and changes are showing low to high ranges of less than the 22 day averages.   The USDCHF and AUDUSD is trading near unchanged as is the GBPUSD (within 11 pips is pretty good).  The USDJPY has spent most of the day below the previous day close, but found support buyers near its 200 day MA at 108.29 area.  The pair trades between that MA and the 100 day MA above at 109.01. 

The ranges and changes for the major currency pairs
In other markets: 
  • Spot gold is down -$11.63 or -0.72% at $1619.88
  • WTI crude oil futures are trading down $0.22 or -0.97% at $22.36
in the premarket for US stocks, the futures are implying a lower opening
  • Dow industrial average -740 points
  • S&P index -86.32 points 
  • NASDAQ index -239 points
in the European equity markets the major indices are getting back some of the gains seen over the last few days as well:
  • German DAX -3.67%
  • France's CAC -4.4%
  • UK's FTSE 100 -4.96%
  • Spain's Ibex, -3.9%
  • Italy's FTSE MIB -3.4%
in the US debt market yields are lower with the yield curve flattening. The 2-10 year spread has now to around 48 basis points from 55 basis points at the close yesterday:

US yields are lower
The European 10 year yields are mostly lower. The exception is in Italy as investors shun their debt.

European shares are mostly lower
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