The GBP is strongest and the JPY is the weakest as the NA session begins. The USD is modestly higher after running higher on Friday after the "Wow" US jobs report.
The GBP moved higher on the back of some Mann comments saying she favors more hikes. UK yields are moving sharply higher.
The US stocks are trading lower in premarket trading. European shares are also lower. The economic calendar is light today with Ivey PMI in Canada and Employment Trends in the US both released at 10 AM. Tomorrow Fed Chair Powell is scheduled to speak. The markets will be interested in hearing his post-jobs view.
Later tonight in the US (in the morning in Australia), the RBA is expected to announce a 25 basis point hike to 3.35% from 3.10% currently. Recall, the 4Q CPI inflation came in much stronger at 1.9% vs 1.6% in the 3Q.
A snapshot of other markets is showing:
- Spot gold is trading up $6 or 0.34% at $1870.90
- Spot silver is trading down $0.02 at $22.29
- WTI crude oil is up $0.85 at $74.25
- Bitcoin is back below $23000 at $22860. The digital currency traded as high as $23582 over the weekend
In the premarket for US stocks, the major indices are lower:
- Dow is down -203 points after falling -127.93 points on Friday
- S&P is down -32 points after falling -43.26 points on Friday
- Naddaq is down -129 points after falling -193.86 points on Friday
In the European stock market, the major indices are lower:
- German Dax is down -1.01%
- France's CAC is down -1.53%
- UKs FTSE 100 is down -0.77%
- Spain's Ibex is down -0.75%
In the US debt market, the US yields are higher across the board:
In the European debt market, yields are also sharply higher led by the UK 10 year yield.
