The CAD is the strongest (continuing the move higher seen yesterday) and the NZD is the weakest as North American traders enter for the day.
The USD is mixed/little changed as traders await the US CPI data to be released at 8:30 AM. That data point is expected to rise to 7.0% YoY vs 6.8% last month (highest since 1982). The core CPI inflation is expected to rise by 5.4% (vs 4.9% last month - highest since 1991).
US stock index futures are pointing to a higher open after yesterday's rise that saw the Nasdaq index lead the way with a 1.41% rise.
US rates are little changed after yields fell yesterday (10 and 30 year yields moved down around -4 basis points yesterday). The US treasury will auction $36 billion of 10 year notes (reopened 9 and 10 month notes) at 1 PM today. Tomorrow they will complete the refunding this week by auctioning $22B of 30 year bonds (29 year and 10 month).
The heat came off the rate-rise trend from last week, after the Fed Chair at his renomination testimony implied the typical methodical progression for the balance sheet policy change (it will take 2-4 meetings to gear up and no details of QT or just run off of the balance sheet). That appeased the market is yields fell
Crude oil is up about 0.26% after yesterday's over 3% rise. The weekly inventory data will be released at 10:30 AM ET. The private data yesterday showed:
A snapshot of the markets as North American traders enter for the day shows:
- Spot gold down $2.30 -0.13% at $1818.90
- Spot silver is unchanged at $22.77
- WTI crude oil futures are up $0.22 or 0.27% at $81.44
- The price of bitcoin is trading higher $43,144. It was trading around $42,718 near 5 PM ET yesterday
In the US equity market, the futures are implying a modestly higher opening. The NASDAQ is up two consecutive days. The S&P index snapped a six day losing streak. The Dow industrial average snapped a four day losing streak.
- Dow up 40 points after yesterday's 183.15 point rise
- S&P index up 5.2 points FTSE is 42.8 point rise
- NASDAQ up 28 points after yesterday's 210.62 point rise
In the European equity markets, the major indices are higher/near unchanged:
- German DAX +0.3%
- France's CAC 0.5%
- UK's FTSE 100 +0.6%
- Spain's Ibex unchanged
- Italy's FTSE MIB unchanged
In the US debt market, yields are steady.
IN the European debt, market, the benchmark 10 year yields are down by around -1 to -3 basis points. The US 10 year yield at 1.748% remains higher than the major European 10 year yields with Italian yields -39 basis points being the closest (their yield is at 1.358%).
