Th strongest to weakest of the major currenciese

The AUD is the strongest and the GBP is the weakest as North American session begins. The S&P is up 4.4% and the Nasdaq up 6.8% over the last two days in the face of a Fed rate hike and the Fed raising their rate hike projections to 7 from 3 in December. The Bank of England just raised their rates by 0.25% to 0.75% as expected. Yesterday, the USD gave up initial gains after the decision, and is continuing the run to the downside today. Today, the GBP has given up their gains and is now trading lower on the day after their decision.

The AUD was boosted by the follow through buying after China government and central bank put their support behind the stock market and economy on Wednesday. The AUD also benefitted from a strong employment report that showed a gain in employment of 77.4K vs 36.0K. The unemployment rate also fell from 4.2% last month to 4.0% this month. The GBPUSD is lower after the BOE raise rates by 25 basis points as expected.

The Russia Ukraine war continues with Russia bombing a theater that provided shelter for children. Yesterday Biden called Russian Pres. Putin a war criminal. Russia shot back in defense and also called domestic resistance "scum and traitors". Some think the chance for a diplomatic solution is now farther away.

A snapshot of markets currently shows:

  • Spot gold is up $12.60 or 0.62% at $1939
  • Spot silver is up $0.16 or 0.61% $25.24
  • WTI crude oil is back above $100 at $100.38 that's up $5.40
  • the price of bitcoin is trading at $41,100. After trading as high as $41,497 and is lows $40,496

In the premarket for US stocks, the major indices are trading marginally lower:

  • Dow industrial average -112 points after yesterday's 518.76 point rise
  • S&P index -17.81 points after yesterday's 95.41 point rise
  • NASDAQ index -71 points after yesterday's at 487.93 point rise

In the European equity markets, the major indices are trading mixed:

  • German DAX -0.6%
  • France's CAC unchanged
  • UK's FTSE 100 +0.5%
  • Spain's Ibex -0.3%
  • Italy's FTSE MIB -0.9%

In the US debt market, yields are lower after yesterday's move to the upside especially in the short end. The two – 10 year spread is down to 21.1 basis points.

US yields are lower

In the European debt market, the benchmark 10 year yields are also mostly lower:

European benchmark 10 year yields are lower