The EUR is the strongest and the AUD is the weakest as the NA session begins

The EUR is the strongest and the AUD is the weakest as the NA session begins.

The USD is mixed after leading the charge to the upside yesterday. The greenback is lower vs the EUR and the CHF and higher vs the rest. The market has shifted to 75 basis points which to me has seemed to have been whispered to influencers like CNBCs Leesman and the WSJ reporter Nick Timiraos. Other investment banks joined the chorus.

The fact is the Fed is backed in the corner. The market has now priced in rates higher than the 2.5% neutral rate. The Fed is at 1%. Forget about year end. Forget about dot plot. Inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term did not come down but moved higher. There was no savior since the last meeting. Yes, they may tighten into a recession now and not pull off the neuron a soft landing, but the other side of monetary policy mountain (opposite of hikes), is the ability to ease. The Fed would be hard pressed to ease at 1.5%. They need rates higher so they can ease. They are now not even close to neutral.

From other countries, Japan's finance minister raise some concern about the weakness of the JPY. While at the ECB, ECB's Knot doubled down on his call for a 50 basis point hike in July.

The price of bitcoin Bitcoin Bitcoin is the largest and world’s first digital currency launched back in 2009 by the entity, Satoshi Nakamoto. Being a digital currency, a defining feature of Bitcoin is that it functions without a central bank or single administrator. Rather, Bitcoin instead can be sent by peer-to-peer (P2P) networking, which is itself absent of any intermediaries.Instead of being a physical currency, Bitcoins represent pieces of digital code that can be sent and received across a kind of distributed ledger n Bitcoin is the largest and world’s first digital currency launched back in 2009 by the entity, Satoshi Nakamoto. Being a digital currency, a defining feature of Bitcoin is that it functions without a central bank or single administrator. Rather, Bitcoin instead can be sent by peer-to-peer (P2P) networking, which is itself absent of any intermediaries.Instead of being a physical currency, Bitcoins represent pieces of digital code that can be sent and received across a kind of distributed ledger n Read this Term moved to a low of $20816 and is now below the 200 week MA at $22,361.62. If the price can close week below that moving average would be the 1st time since March 9, 2020 (at the start of the Covid). Coinbase announced that it was cutting 18% of jobs.

Stocks are targeting a modestly higher opening after plunging 2 consecutive days.. Small business optimism is down to the lowest level in 18 months. US PPI will be released at the bottom of the hour with the year on year expected to come in at 10.9% vs. 11.0% last month

A look around the markets shows:

• spot gold is trading near unchanged at $1819.19
• spot silver is up $0.10 or 0.50% at $21.14
• WTI crude oil futures are trading up $0.77 at $121.70
• the price bitcoin is trading at $21,882. As mentioned the 200 week moving average is currently at $22,361.

In the premarket for US stocks, the major indices are modestly higher

• Dow industrial average is up 111 points after yesterdays -876 point plunge
• S&P index is up 18 points after yesterdays 151.21 point plunge
• NASDAQ index is up 82 points after yesterdays 530.8 point plunge

In the European equity markets, the major indices are lower

• German DAX, -50 points or -0.37% at 13378
• France's CAC -53.61 points or -0.89% at 5968.72
• UK's FTSE 100 -34 points or -0.48% at 7171
• Spain's Ibex -49.1 points or -0.60% at 8134.51
• Italy's FTSE MIB -110 points or -0.50% at 21808

In the US debt market, yields are mixed with the 2 year up and the rest of the yield curve lower.

• 2 year 3.315%, +3.4 basis points
• 5 year 3.447%, -3.3 basis points
• 10 year 3.335%. -3.4 basis points
• 30 year 3.345%, -2.2 basis points

The 2 – 10 year spread is within 2 basis points of inverting.

In the European debt market, Italian 10 year yield continued to push higher with the yield now comfortably above the 4% level at 4.189% as investors shun the riskier and more debt laden countries..