The USD is the strongest and the GBP is the weakest

The USD is the strongest and the GBP is the weakest as the NA session begins. The markets were all in motion yesterday and on Monday to start the month of October. The USD declined, rates fell, gold and oil rallied (with OPEC+ in play). The Reserve Bank of Australia gave traders some hope that a shift in the accelerated rate hikes had slowed after they hiked by 25 basis points instead of 50 bps.

Today, the markets are still in motion but in the opposite direction. The USD is higher. US rates are back higher. Gold is lower. Oil is lower despite the most recent chatter that number is 1.8 barrels per day cut in supply (it is important if it comes from quotas or actual production). The Reserve Bank of New Zealand announced their rate decision and they did not start a trend, opting instead to raise rates by 50 basis points. The RBNZ said:

No backing down from the RBNZ.

ADP will announce their national employment job numbers for September. Last month the number came in at 132K (the release returned after a re-tooling). The expectations are for 200K. The BLS NFP rose 315K last month and are expected to increase by 265K when it is released on Friday at 8:30 AM ET).

UK PM Truss tried to appease markets by pledging that her government will "always be fiscally responsible",but the markets are not buying the talk (yields are 15 bps in the UK today).

A look at the markets are showing:

  • spot gold is trading down $19.05 or -1.10% at $1706.02
  • spot silver is trading down $0.75 or -3.61% at $20.28
  • WTI crude oil is trading at $86.34 that's down around $0.20 on the day
  • The price bitcoin remains just above the $20,000 level $20036

In the premarket for US stocks, the major indices are lower after 2 days of sharp gains:

  • Dow industrial average is down -269 points after yesterdays 825.43 point surge
  • S&P index is down -34.68 points after yesterdays 112.48 point rise
  • NASDAQ index is down 104 points after yesterdays 360.97 point push higher

in the European equity markets, the major indices are also trading lower:

  • German DAX -1.0%
  • France's CAC -0.8%
  • UK's FTSE 100 -0.9%
  • Spain's Ibex -1.6%
  • Italy's FTSE MIB -1.6%

in the US debt market, yields are higher with the 10 year yield up 8.2 basis points at 3.699% after trading as low as 3.564% yesterday.

US yields
US yields are rebounding to the upside

In the European debt market, the UK benchmark 10 year yields are leading the way with a 16.5% gain as investors shun the pound and UK assets once again:

European benchmark 10 year yields are higher