A snapshot of the strongest currencies in trading today show the AUD, GBP and CAD are leading the charge higher (if you can call it that). The weakest currencies are the JPY and the NZD.
The strongest and weakest as NY traders enter for the trading day.
The action is very contained so far today after what has been a rockin’ week. The low to high trading ranges for the major currency pairs are showing most pairs below the averages over the last 22 trading days.
The ranges are showing below trend high low volatility
Most focus is on the JPY pairs as stocks rebound and the flight into the safety of the JPY continues. Looking at some of the major JPY crosses, there have been some moves above MAs (blue line = 100 hour MA, green lines= 200 hour MA). The price should stay above the broken MAs now if the bulls are to remain in control. The stock markets will be eyed.
The major JPY crosses are continuing the moves higher and above MA (100 hour = blue line, 200 hour = green line)
The Stock markets are rebounding today, however, The US stock futures in pre-market trading are up. The European markets are showing gains as well. Bond yields are also ticking up as the flow of funds may be shifting back from bonds to stocks.
US Housing Starts and Building Permits are due at 8:30 AM (1008K for starts and 1030K for permits) and of course Yellen will also be speaking at that time at the Boston Fed Conference on Inequality. The market will be focused on any shift in policy stance or concerns from Chair Yellen. Feds Rosengren on a CNBC article said at the moment the Fed will keep the course. In Canada, CPI will be released at 8:30 AM with 2% YoY and MoM showing a 0.1% for headline and 0.2% for the core expected
A snapshot of the Stocks and bonds for October 17th.
