The strongest to weakest of the major currencies

The AUD is the strongest and the USD is the weakest as the North American session begins.

Traders await the US CPI data which is expected to show a headline decline back down toward 8.1% from 8.5% last month. The core (ex food and energy) is expected to rise by 6.0% down from 6.5%. The month-to-month figures are expected to see a rise of 0.2% for the headline figure and 0.4% for the core figure (down from 1.2% and 0.3% last month). A year ago, the headline number came in at 0.8% while the core number came in at 0.9%. Both of those high numbers will drop out of the equation helping to push the year on year down (it's math thing). The next few months in the core, have the potential to see the CPI data move lower as a result of the dropping off of relatively high MoM increases (0.9%, 0.7% and 0.9%). Gasoline prices fell last month which will lower the value. There will also be a rejiggering of the used car prices which could have an impact on the data.

The US stocks are higher in premarket trading. Yields are lower in the US. Crude oil is rebounding after moving back below the $100 level yesterday. The  crude oil  data will be released at 10:30 AM ET with crude oil stocks expected to show a -0.457 million drawdown. The private data came showing a 1.161 million build. The collapsed stable coin - Terra or UST - announced a "recovery plan". They will also seek new funding.  Bitcoin  was trading at $31,062 near 5 PM ET yesterday. The current prices up about $500 above that level. Coinbase shares are down 15.7% in premarket trading as they reported a sharp decline in earnings of $1.98 vs. expectations of a gain of $0.18. Revenues were also lower than expectations.

A look at the markets shows:

  • spot gold is trading up $13 or 0.72% at $1850.50
  • spot silver is up $0.50 or 2.39% at $21.73
  • WTI crude oil futures are trading up $3.70 at $103.43
  • The price bitcoin is up around $600 and $31,641

In the premarket for US stocks, the futures are implying a higher opening across the board:

  • Dow industrial average is up 282 points after yesterdays -84.96 point decline
  • S&P is up 43 points after yesterdays 9.81 point rise
  • NASDAQ is up 170 points after yesterdays 114.42 point rise

In the European equity markets, the major indices are also trading higher:

  • German DAX is up 1.45%
  • France's CAC is up 2.0%
  • UK's FTSE 100 is up 1.0%
  • Spain's Ibex is up 1.5%
  • Italy's FTSE MIB is up 2.2%

In the US debt market, the yields are trading lower. The US treasury will auction off 10 year notes at 1 PM ET after a successful 3 year note auction yesterday:

  • 2 year 2.614%, -0.8 basis points
  • 5 year 2.879%, -3.9 basis points
  • 10 year 2.946%, -4.7 basis points
  • 30 year 3.097%, -3.1 basis points

In the European debt market, the benchmark 10 year yields are also trading lower led by Italy with a -9.3 basis point decline.

European yields are lower