The strongest to weakest of the major currencies

The  JPY  is the strongest and the  GBP  is the weakest as North American traders enter for the day. The USD is tilted to the upside but also lower vs. the EUR, JPY and CHF. The US stocks are giving back gains from yesterday after social media company Snap warned that earnings were much lower than expected and accelerating to the downside. That put the kibosh on the more upbeat comments from J.P. Morgan's Dimon yesterday. Needless to say, the markets are very sensitive to negative news. The flash PMI data out of Europe were generally weaker than expected.

Federal reserve Chairman Powell will speak at 12:20 PM ET. The Fed minutes will be released tomorrow at 2 PM ET. Yesterday Atlanta Fed Pres. Bostic implied that the Fed may be able to pause in September after 2X50 basis point hikes. Admittedly, he also said they may have to raise by 25 or 50 basis points as well. Kansas Citi Fed Pres. George also said that it may be possible that the Fed could pause rate rises when the target reaches 2% (again that would be after 2X50 basis point hikes).

Today, new home sales for April (751K vs 763K last month), and the Richmond Fed manufacturing index (9 vs 14 last month) will be released at 10 AM ET. Prior to that at 9:45 AM ET the Markit Flash manufacturing and services PMI will be released with expectations for 57.6 (down from 59.2) and 55.1 (down from 55.6) respectively.

A look around the markets shows:

  • Spot gold is trading up $6 or 0.32% at $1858.90
  • Spot silver is up up $0.12 or 0.54% at $21.90
  • WTI crude oil is trading up $0.12 at $110.42
  • Bitcoin is trading at $29,252.51 at this time yesterday the price was trading up at around $30,500

In the premarket for US trading, the futures are trading sharply lower as result of the Snap warning:

  • Dow is down -234.24 points after yesterdays 618.34 point rise
  • S&P index is down 46 points after yesterdays 72.41 point rise
  • NASDAQ index is down -214 points after yesterdays 180.66 point rise

In Europe: the major indices are also trading lower

  • German DAX is down -120 points or -0.5%
  • France's CAC is down -58.46 points -0.92%
  • UK's FTSE 100 is down -5.41 points or -0.07%
  • Spain's Ibex is down -11.79 points or -0.13%

The US debt market this morning, yields are lower in reaction to a flight into the relative safety of US treasuries

  • 2 year yield 2.591%, -3.4 basis points
  • 5 year yield 2.828%, -4.1 basis points
  • 10 year yield 2.806%, -5.5 basis points
  • 30 year 3.013%, -4.3 basis points

In the European debt market the benchmark 10 year yields are also lower across the board.

European benchmark 10 year yields are lower