The week is starting with a continuation of the corrective USD selling seen toward the end of last week. The EUR is the strongest after Ukraine took back some of the territory lost to Russia and after ECB Nagel's further jumped on the "tighten even to point of slowing growth in order to end inflation" trend. Chatter of reducing the balance sheet also have been discussed. The EURUSD moved above its 50% midpoint of the last move down from the August 10 high to the September low at 1.0155 and is up 1.06% on the day. The USDJPY is near unchanged vs the greenback after a test of the 100 hour MA above could not sustain momentum (at 143.327). The GBPUSD is trading near session highs despite weaker GDP, Construction output and industrial production, and has moved above its 50% midpoint of the move down from the last major corrective high from the hourly chart on August 26 at 1.16522, giving the buyers a short term victory. See the weekend forex report outlining the key levels and bias levels for the major currency pair coming into the trading week (CLICK HERE - there are times for the respective currency pair analysis provided).
A look at the market shows:
- spot gold is trading up $16.68 or 0.97% at $1732.30 on the back of the weaker dollar
- spot silver is trading up $0.64 or 3.37% at $19.45
- WTI crude oil is trading up $0.54 at $87.33
- The price bitcoin is continued its moved to the upside on the risk on sentiment at $22,320
In the premarket for US stocks, the major indices are trading higher after an up week last week.
- Dow industrial average up 123.29 points after Friday's 377.19 point rise
- S&P index is up 24 points after Friday's 61.16 point rise
- NASDAQ index is up 79 points after Friday's 250.18 point rise
In the European equity markets the major indices are following up to the solid gains on Friday:
- German DAX, +1.67%
- France's CAC, +1.33%
- UK's FTSE 100 +1.33%
- Spain's Ibex +1.46%
- FTSE MIB +1.6%
In the US debt market:
- 2 year yield 3.521%, -5.0 basis point
- 5 year 3.390%, -5.6 basis points
- 10 year 3.269%, -5.1 basis point
- 30 year 3.417%, -4.0 basis point
In the European debt market, the benchmark 10 year yields are lower as ECB looks to tighten to slow growth and inflation:
- Germany 1.644%, -5 point basis points
- France 2.216% -5.7 basis points
- UK 3.079%, -1.6 basis points
- Spain 2.790%, -7.0 basis point
- Italy 3.934% -8.0 basis point
