The strongest to weakest of the major currencies

As the NA session begins, the NZD is the strongest and the GBP is the weakest. Yesterday, the USD fell sharply after the weaker than expected CPI report. The USD is following that move lower with another modest decline today ahead of the PPI data and the US initial jobless claims. The PPI is expected to rise by 0.2% vs 1.1% last month with ex food and energy up 0.4%. The YoY headline number is expected to fall to 10.4% from 11.3%, with the ex food and energy falling to 7.6% from 8.2%.

Stocks are higher. Disney leads the Dow with a gain up to $122.70 vs a close of $112.43 after reporting better earnings and revenues (and subscriptions). They also announced a new price increase. The major indices soared yesterday after the better CPI data.

US yields are lower in early trading with declines more pronounced in the shorter end. The US treasury will auction off 30 year bonds at 1 PM ET. Yesterday the treasury found strong demand for the 10 year note issue at its auction. The 3 year note auction also was met with strong buying interest.

A look at other markets shows:

  • spot gold is up $5.28 or 0.29% at $1796.80.
  • Spot silver is up $0.05 or 0.24% at $20.61
  • WTI crude oil is trading up $1.18 or 1.7% at $93.10. Yesterday the weekly inventory supply showed another strongeer than expected build for the 2nd consecutive week. However, the price low of $87.65 cannot take out the low from last Friday at $87.01 nor the low from Monday at $87.22. So traders snapped the price back higher. The pair is moving away from its 200 hour moving average to the upside and $91.60
  • The price bitcoin traded above its July 30 high at $24,657 and traded at the highest level since June 13. The high price reached $24,750. The current prices trading at $24,670 (see video here)

In the premarket for US stocks, the major indices are continuing the rally from yesterday:

  • Dow industrial average is up 211 points after yesterdays 535.10 point rise
  • S&P index is trading up 23.51 points after yesterdays 87.75 point rise
  • NASDAQ index is up 78.43 points after yesterdays 360.88 point rise

In the European equity markets, the major indices are mostly higher (UK FTSE is lower).

  • German DAX, +0.33%
  • France's CAC, +0.16%
  • UK's FTSE 100, -0.41%
  • Spain's Ibex, +0.62%
  • Italy's FTSE MIB +0.53%

In the US debt market, yields are lower with the 2 year leading the way:

US yields
US yields are lower

In the euro, the benchmark 10 year yields are mostly lower with the exception of the UK:

European benchmark 10 year yields