The GBP is the strongest. The JPY is the weakest.

As the new trading week gets started, the GBP has positioned itself as the strongest with a 0.76% gain in the GBPJPY leading the way (the GBPUSD is up by 0.42%). Overall, the currency with the highest cumulative % gain, the overall change is not overwhelming. In fact, the EURGBP is higher by a few pips (GBP weaker). That is unusual. The weakest currency - as trading gets started - is the JPY.

The weakest currency - as trading get's started - is the JPY. Lots of buying in the JPY pairs across the board. With the FOMC ahead, one might think that pair would lead the way, but it is the other pairs like EURJPY, GBPJPY, CADJPY, AUDJPY and NZDJPY leading the way.

The ranges and changes reflect the demand in the JPY crosses with the GBPJPY and EURJPY not only higher by the most pips, but above or near the 22-day averages (about a month of trading).

The schedule is sparse today. In the UK the Conference Board Leading index will be released at 9:30 AM ET. Last month the index rose +0.1%.. That was the largest gain over the last 7 months (four were 0.0%, the other two showed declines of -0.2% and -0.3%. Not much pipeline confidence in that report.

Later in the US, the treasury will auction 10 year notes (today, the yield rose to 2.5262%). That was the highest rate since end of September/early October of 2014.

The US Federal Budget deficit will be released for November with a deficit of -130B. In November of last year, the deficit was -64.55B. Is is that bad? It seems there probably were transfer payments that did not match vs last year as in October the deficit was -44B vs -136B in the prior year. So this month is a pay back for last month. Get it?