The strongest to weakest of the major currencies

As North American traders enter for the week, the AUD is the strongest, while the EUR is the weakest. The EU is contemplating releasing strategic petroleum reserves joining the US in it's efforts to slow the rise of oil as a result of the Ukraine war. Last Thursday, Pres. Biden announced that the US will be releasing 1 million barrels per day from strategic petroleum reserve starting May 1 for a six-month period. Counter balancing is the EU is looking to impose even more new sanctions after proof of atrocities (the killing of civilians execution style) from Russia emerged over the weekend. The Russians have denied the allegations but the news threatens peace efforts. The price of oil is trading up as traders enter for the week.

The Fed is likely to push for a 50 basis point rise after Friday's solid jobs report. Feds WIlliams over the weekend said that the Fed could announce the start of balance sheet reduction at the next meeting in May. He added:

  • Expects that rate increases and balance sheet reduction will help reduce inflation to around 4% this year
  • Then "close to our 2% longer-run goal in 2024"

Meanwhile Fed's Daly added:

  • "The case for 50, barring any negative surprise between now and the next meeting, has grown"

The calendar is light with Factory Orders the only US release at 10 AM ET.

A snapshot of the markets as North American traders enter for the day shows:

  • Spot gold is trading up $7.62 or 0.39% $1932
  • Spot silver down up $0.15 or 0.57% at $24.77
  • Spot crude oil is trading up $.50 at $100.78
  • Bitcoin is trading at $46,149. On Friday the price of the price of the digital currency closed near $46,300

In the premarket for US stocks, the major indices are trading higher. Friday the major indices closed higher in near highest levels of the day after stronger jobs report.

  • Dow industrial average is up 26.73 points after Friday's 139.92 rise
  • S&P index up up 8.39 points after Friday's 15.45 point rise
  • NASDAQ index is up 62.04 points after Friday's 40.98 point rise

In the European equity markets, the major indices are mostly little changed in the North American morning snapshot

  • German DAX, unchanged
  • France's CAC, +0.15%
  • UK's FTSE 100 +0.1%
  • Spain's Ibex, -0.7%
  • Italy's FTSE MIB -0.3%

In the US debt market, US yields are mixed. The two year yield is down marginally while the 10 year and 30 year yields are higher. Although the 2– 10 year spread widened, it still remains negative after closing inverted for the first time in this cycle to the downside on Friday.

US rates
The 2– 10 year spread remains negative

In the European debt markets, the benchmark 10 year yields are sharply lower across the board:

European yields
European benchmark 10 year yields are lower