The GBP is the runaway weakest
The CHF is the strongest followed by the USD and JPY, while the GBP is the runaway weakest of the major currencies as North American traders enter for the day. Brexit concerns weigh heavily on the pound as the clock ticks down for a realistic chance for a deal before year end (it is always ticking though). The EU leaders will meet on Thursday. Today, European Commission president, Ursula von der Leyen, is to speak with UK prime minister, Boris Johnson, at 1600 GMT.
The ranges and changes are dominated by the GBP pairs (with GBP falling vs all the major currencies). The ranges in the GBP pairs are all above the 22-day averages. Looking at the snapshot of the changes for the "other currency pair" vs the USD, the EURU, USDJPY, USDCHF are all within 13 pips of the Friday close. The USDCAD, AUDUSD and NZDUSD are showing flights out of the riskier currencies like the CAD, AUD and NZD and into the USD, but they are off the extremes for the day. The JPY crosses are all trading to the downside with the GBPJPY down -179 pips in the morning snapshot (which happens to match the GBPUSD decline).
In other markets:
- spot gold is trading down $5.60 -0.31% at $1833
- spot silver is trading down $0.49 a -2.04% at $23.69
- WTI crude oil futures are trading down $0.40 or -0.86% of $45.86
In the premarket for US stocks the major indices are trading lower as per the futures:
- Dow industrial average -117 points
- S&P index down -12.7 points
- NASDAQ index down -6 points
in the European equity markets, the major indices are trading mixed:
- German DAX, -0.4%
- France's CAC, -0.8%
- UK's FTSE 100, +0.4%
- Spain's Ibex, -0.4%
- Italy's FTSE MIB, -0.3%
In the US debt market, the yields are lower after last week's run higher that's all the 10 year get close to the 1.0% level. Today the 10 year yield reached 0.974% before rotating back to the downside. It is currently trade at 0.943%.
In the European debt market, benchmark 10 year yields are moving lower as well. German and French yields still remain below the 0.0% level (at -0.578% and -0.339% respectively. Spain yields remain just above the 0.0% level at 0.05%.
