The strongest currency is the GBP and the AUD with most (if not all ) of the gain being against the CAD
The weakest currency is CAD. The CAD is really the only currency moving today. Oil prices is down at the 80.00 range, (Canada is an oil exporter) and a technical breakout for the USDCAD is helping to propel this pair.
USDCAD broke to new year highs and highs going back to 2009
Yesterday, the USDCAD made new year highs and is trading at the highest level going back to July 2009. IN the process the pair moved away from the 50% retracement of the move down from the 2009 high to the low reached in 2011 (at the 1.12336 level – see chart above). The trading range for the year, for the USDCAD was showing the lowest range going back to 1996.(see post from yesterday: “Do you see an extension in your favorite currency pair” and the end of day video CLICK HERE). There was room to roam and the technical breakout and it broke out. In the process the range is getting more normalized.
Below is the graph showing the relative strength and weakness of the major pairs.
Snapshot of the winners and losers in the forex market for October 15, 2014
Stocks and Bonds
Stocks are down in Europe and in pre-market the US stocks are projected to open lower as well. Yesterday in what was hoped to be a correction day in the US after the fall below the 200 day MA on the S&P on Monday, was more of a dud with the Dow down -5.88 and the S&P only up 2.96. Could be more trouble in equities. The Euro Stoxx index is down 1.44% and German Dax is down 1.22% (at the time of the snapshot at least ). With stocks down, bond yields are following suit as the flow of funds heads to the safety of the global bonds. German bonds, are at 0.79%. French 10 year bonds at 1.16%. US 10 year bonds are down to 2.15%. Who would have “thunk?”
It is all about oil, stocks, bonds, and CAD so far today. Will the other pairs wake up today?
With Empire Manufacturing, Retail Sales, PPI, Business Inventories a and the Beige book later this afternoon (Draghi speaks again later today), there is potential for more action. Stay tuned.
Money out of stocks and into bonds.