Risk off kinda day
The report that the US/China deal may not get passed Phase I, is leading to a semi "risk off" move in the markets. The JPY is attracting "flight to the relative safety of the JPY" flows. The AUD is slumping as is the CAD and the USD. Gold is higher and yields and stocks are lower.
There is a little more volatility in the market at the start of the North American session (certainly compared to the earlier days this week. The USDJPY at this time yesterday had a 9 pip range). The USDJPY is trending lower with the pair accelerating in the London morning sesssion. The pair approaches the 200 bar MA on the 4-hour chart at 108.047. The GBPUSD is running the other way and trades near its session high. Meanwhile , the EURUSD is sitting at unchanged for the day after a move higher stalled.
In other markets:
- Spot gold is up $10.32 or 0.69% at $1506
- WTI crude oil futures are trading down $0.57 or -1.02% at $54.50
In the premarket for US stocks, the major indices are mixed, as there is pull higher from better Apple and Facebook earnings after the close yesterday in the NASDAQ index. Apple shares are up 1.66% in premarket trading while Facebook shares are up 4.26%. The snapshot of the implied openings currently shows:
- Dow, -45 points
- S&P index, -3 points
- NASDAQ index, +16 points
In the European stock market, shares are mostly lower
- German DAX, -0.1%
- France's CAC, -0.2%
- UK's FTSE 100, -0.9%
- Spain's Ibex, -0.1%
- Italy's FTSE MIB, +0.3%
In the US debt market yields are trading lower. The snapshot currently shows:
In the European debt market, the benchmark 10 year yields are also trading lower by about 5 to 6 basis points.
