The CHF is the strongest and the USD the weakest as the NA session begins

The CHF is the strongest and the USD is the weakest as the North American session begins. The US retail sales is on deck at the bottom of the hour with expectations for growth of 0.8% after last month's -0.3% decline. The ex auto is expected at +0.6%. The data will be yet another data point for Fed officials ahead of the rate decision on July 27. The CPI data this week, solidified 75 basis points for the meeting with the market starting to price in 100 basis points as well. That chatter has backed off a bit as Fed's Waller weighed in with his expectations 75 BP as being right but did say that a stronger retail sales could get him to up that projection. Bullard is leaning to 75 basis points currently but he is a proponent of getting to 3.5% as fast as possible. So be prepared.

The major currencies are fairly scrunched together with the CHF and the EUR pretty much in a dead heat for the strongest. The EURUSD is one of the biggest gainer (up 0.43%) as it extends above its falling 100 hour MA ahead of the key data. The 100 hour MA is at 1.00389 and will be a key barometer. Although the price is above, the risk is still high ahead of the data. The price of the EURUSD has not traded above its 200 hour MA since June 28. That level comes in at 1.01213 and will be another key barometer today. The USDJPY and GBPUSD are little changed. The USDCAD USD/CAD The USD/CAD is the currency pair encompassing the dollar of the United States of America (symbol $, code USD), and the Canadian dollar of Canada (symbol $ code CAD). The pair’s exchange rate indicates how many Canadian dollars are needed in order to purchase one US dollar. For example, when the USD/CAD is trading at 1.3500, it means 1 US dollar is equivalent to 1.35 Canadian dollars. The US dollar (USD) is the world’s most traded currency, whilst the Canadian dollar (CAD) is the world’s seventh The USD/CAD is the currency pair encompassing the dollar of the United States of America (symbol $, code USD), and the Canadian dollar of Canada (symbol $ code CAD). The pair’s exchange rate indicates how many Canadian dollars are needed in order to purchase one US dollar. For example, when the USD/CAD is trading at 1.3500, it means 1 US dollar is equivalent to 1.35 Canadian dollars. The US dollar (USD) is the world’s most traded currency, whilst the Canadian dollar (CAD) is the world’s seventh Read this Term has backed off with oil prices marginally higher at $97.13 after trading as low as $90.54 yesterday as volatile trading persists. Pres Biden meets with Saudi Arabia and will discuss more oil being pumped to ease the pressure on the market (among other things).

Overnight, China GDP contracted more than expected at -0.4%, but monthly retail sales bounced in the post lockdown rebound.

US stocks are set to open higher as per the futures Futures Futures or a futures contract represents a legal agreement to buy or sell a security or asset at a predetermined price at a specified time in the future. Of note, the parties are not known to each other.These transactions usually involve commodities or other securities involving the buying and selling for a forward or predetermined price.Futures also adhere to a delivery date, which specifies the date of delivery and payment. Relative to other forms of investing futures are much more complex, as Futures or a futures contract represents a legal agreement to buy or sell a security or asset at a predetermined price at a specified time in the future. Of note, the parties are not known to each other.These transactions usually involve commodities or other securities involving the buying and selling for a forward or predetermined price.Futures also adhere to a delivery date, which specifies the date of delivery and payment. Relative to other forms of investing futures are much more complex, as Read this Term. Citicorp earnings did beat on the top and bottom line and are trading marginally higher in pre-market trading.

Italy political situation remains in near crisis levels. PM Draghi submitted his resignation but Italy's president Mattarella rejected the resignation. Draghi lost support of the 5-Star Movement in his coalition in the vote of confidence yesterday and had vowed to resign if that occurred.

A snap shot of other markets ahead of the key retail sales is showing:

• spot gold is trading down $4.72 or -0.28% at $1705.28. The price dipped below the $1700 level yesterday but rebounded into the close
• spot silver is trading near unchanged at $18.43
• WTI crude oil is trading up $1.38 at $97.18
• The price bitcoin is back above the $20,000 level at $20,771.24

In the premarket for US stocks, the major indices are trading higher after a mixed close yesterday saw the Dow and S&P move lower for the 5th consecutive day. The NASDAQ index eked out a small gain. The futures are currently implying:

• Dow industrial average is higher by after yesterdays -142.62 point
• S&P index is higher by after yesterdays -11.4 point decline
• NASDAQ index is higher by after yesterdays small 3.6 point gain

In the European equity markets,

• German DAX, +176 points or 1.41% at 12695.95
• France's CAC up 90.88 points or 0.34% 5935.28
• UK's FTSE 100 +62 points or 0.88% 7101.90
• Spain's Ibex +84.6 points or 1.08% at 7889.61
• Italian FTSE MIB is trading up 1.08% at 20780

The US debt market, yields are lower ahead of the retail sales:

• 2 year 3.11%, -2 point basis points
• 5 year 3.039%, -3.0 basis point
• 10 year 2.937%, -2 point basis points
• 30 year 3.086%, -2.3 basis points

In the European debt market, benchmark 10 year yields are also trading lower. Italian yields back down to 3.35% after spiking to an intraday high of 3.549% yesterday as political uncertainty gripped the country and led to investors bailing out: