The CAD is the strongest while the JPY is the weakest

The CAD is the strongest and the JPY is the weakest as the NA session begins. The US jobs report last week was better than expected on the headline for November, but revisions dulled some of the jobs gains overall. The wages were higher than expected as well (+0.6%), and the WSJ Timiraos brought that up in his article today saying that "brisk wage growth could lead officials to consider raising their policy rate above 5% in 2023 to fight inflation". He did say the Fed will slow of the pace in December to 50 basis points (which the market was already onboard with anyway).

Fed
Fed could pencil in higher rates next year

The USD initially moved higher on Friday only to reverse the gains and end lower on the day. That move to the downside was continued in the early hours of the trading day, but has backed off a bit vs most of the major currencies. However, the EURUSD is stretching to a new high (lower USD in early trading).

In the weekend forex report, I outlined levels in play as the new trading week begins.

Taking a look at the other markets as North American session begins shows:

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

  • Dow industrial average is -180 points after Friday's gain of 34.87 points
  • S&P index is down 23.25 points after Friday's -4.87 point decline
  • NASDAQ index is down 56 points after Friday's -20.95 point decline

in the European equity markets the major indices are mostly lower:

  • German DAX -0.52%
  • France's CAC -0.57%
  • UK's FTSE 100 +0.30%
  • Spain's Ibex unchanged
  • Italy's FTSE MIB -0.13% strongest weakest of the major currencies

in the US debt market, yields are higher with gains in the short and outpacing the long end.

US debt
US yields are higher with a more inverted tilt

In the European debt, market, the benchmark 10 year yields area lower today with UK and Italy leading the way.

europe
European 10 year yields are lower