The AUD is the strongest and the EUR is the weakest as NA traders enter for the day

The AUD is the strongest and the EUR is the weakest as the North American session begins. Today the US CPI will be released at the bottom of the hour.

The consensus for CPI is a rise to 8.4% from 7.9% on the headline (+1.1% MoM), mainly due to a jump in energy prices at the start of the Ukraine war. That level would be a new 40-year high. Core CPI is forecast to rise to 6.6% from 6.4%. The move higher in inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term is the big reason the market is pricing in a 90% chance of a 50 basis point hike from the Fed at the May 4 meeting with two more half-point hikes coming behind it. The Fed officials are chatting about getting the target rate to the neutral rate which most agree is around 2.25% to 2.5%, but are adamant about taking it one step at a time. Three hikes of 50 basis points would get the target rate to 1.75% to 2%, with 3 additional meetings until year end. Fed's Brainard and Barkin are scheduled to speak after the report. Brainard last week became increasingly bearish in her comments on the economy and policy.

The German ZEW sentiment data today fell to -41 which was the lowest since March 2020, but the good news is it was higher than the -48.4 expectations (last month came in at -39.3). Concerns about stagflation persist as result of the war in Ukraine and higher energy prices. UK claims for unemployment was the smallest in six months (-46.9 K versus -58.0 K last month), but employment in three months grew only 10,000 which was lower than the 50 K estimate.

Oil prices have rebounded today after yesterday's sharp declines, but remain below $100. US stocks are set open modestly higher after yesterday's sharp declines. The NASDAQ NASDAQ The Nasdaq Stock Market or NASDAQ is an American stock exchange. It trails only the New York Stock Exchange (NYSE) in market capitalization and is part of a network of stock markets and options exchanges.Launched back in 1971, NASDAQ is the acronym for the National Association of Securities Dealers Automated Quotations. Since then it is known simply as NASDAQ and has become one of the most influential exchanges worldwide.The NASDAQ was the world’s first electronic stock market, and has since ass The Nasdaq Stock Market or NASDAQ is an American stock exchange. It trails only the New York Stock Exchange (NYSE) in market capitalization and is part of a network of stock markets and options exchanges.Launched back in 1971, NASDAQ is the acronym for the National Association of Securities Dealers Automated Quotations. Since then it is known simply as NASDAQ and has become one of the most influential exchanges worldwide.The NASDAQ was the world’s first electronic stock market, and has since ass Read this Term and the S&P are down for two consecutive days. US yields are mixed with a flatter yield curve. The 2– 10 year spread remains comfortably above inverted at 25.5 basis points in the morning snapshot.

The U.S. Treasury will auction off 10 year notes at 1 PM ET. The 10 year yield moved to the highest level since the week of December 2018 yesterday (2.836%). The current yield is at 2.763%..

A snapshot of the other markets shows:

• Spot gold is trading up to dollars and $0.46 or 0.13% $1956.20
• Spot silver is trading down $0.10 or -0.39% at $24.96
• WTI crude oil futures up $3.84 or 4.07% at $98.13
• Bitcoin is trading at $40,366. Earlier today, the price cracked below the $40,000 level to a low of $39,296

In the US stock market, the major indices are rebounding modestly after sharp declines yesterday

• Dow up 25 points after yesterday's -413.04 point decline
• S&P is up up 6.5 points after yesterday's -75.73 point decline
• Nasdaq is up 36 points after yesterday's at -299.04 point decline

In the European stock market , the major indices are also trading lower with the German Dax the weakest

• German DAX, -0.9%
• France's CAC, -0.6%
• UK's FTSE 100 -0.5%
• Spain's Ibex, unchanged
• Italy's FTSE MIB -0.2%

In the US debt market, yields are mixed with the longer end lower.

In the European debt market, the benchmark 10 year yields are mixed with Germany and France up modestly and Spain and Italy down: