USD
The strongest to the weakest of the major currencies

The AUD is the strongest and the JPY is the weakest as the North American session begins. The USD is mixed to start the trading week. Looking at the trading ranges the EURUSD, USDCHF, USDCAD and NZDUSD all have low to high trading ranges of between 23 pips and 26 pips. That is not a lot of movement. The AUDUSD at 33 pips is still only 60% of the average range seen over the last month of trading (22 days). That is the largest. So safe to say, the price action is somewhat limited. There is room to roam on a break one way or the other for the major currency pairs.

In April, China's consumer price index (CPI) inflation continued to rise for the third consecutive month, indicating a strengthening in domestic demand within the world's second-largest economy. The year-on-year CPI inflation increased by 0.3%, surpassing the anticipated 0.1%, according to data from the National Bureau of Statistics released over the weekend. This marked an improvement from March's 0.1% rise. Additionally, the month-on-month CPI inflation rate also saw a positive shift to 0.1% in April, reversing the previous month's 1% decline.

A look ahead this week, the US CPI will be the main event scheduled for Wednesday at 8:30 AM ET. US Retail sales will also be released on Wednesday giving traders a view of prices and demand. Belowis a look at the major events and releases:

  • Monday, May 13
    • CHF
      • 12:45 PM ET: SNB Jordan speaking

  • Tuesday, May 14

    • GBP
      • 2:00 PM ET: Claimant Count Change: Expected: 13.9K, Last: 10.9K
    • USD
      • 8:30 AM ET: Core PPI m/m: Expected: 0.2%, Last: 0.2%
      • 8:30 AM ET: PPI m/m: Expected: 0.3%, Last: 0.2%
      • 10 AM ET: Fed Chair Powell Speaks in Amsterdam
    • AUD
      • 9:30 PM ET: Wage Price Index q/q: Expected: 1.0% Last: 0.9%

  • Wednesday, May 15

    • USD
      • 8:30 AM ET: Core CPI m/m: Expected: 0.3%, Last: 0.4%
      • 8:30 AM ET: CPI m/m: Expected: 0.4%, Last: 0.4%
      • 8:30 AM ET: CPI y/y: Expected: 3.4%, Last: 3.5%
      • 8:30 AM ET Empire State Manufacturing Index: Expected: -10.8, Last: -14.3
      • 8:30 AM ET Core Retail Sales m/m: Expected: 0.2%, Last: 1.1%
      • 8:30 AM ET Retail Sales m/m: Expected: 0.4%, Last: 0.7%
    • JPY
      • 7:50 PM ET: Preliminary GDP QoQ -0.4% versus +0.1%
    • AUD
      • 9:30 PM ET Employment Change: Expected: 25.3K, Last: -6.6K
      • 9:30 PM ET Unemployment Rate: Expected: 3.9%, Last: 3.8%

  • Thursday, May 16

    • USD
      • 8:30 AM ET: Unemployment Claims: Last: 231K,
      • 8:30 AM ET: Philly Fed manufacturing index: expected 7.7. Last 15.5
      • 9:15 AM ET:US industrial production. Expected 0.2%. Last 0.4%
  • Friday, May 17
    • USD
      • 10:15 AM ET: FOMC Waller speaks.

Fedspeak today includes Cleveland Fed Pres. Mester (9 AM ET) and Fed Gov. Jefferson.

There is not a lot on the earnings calendar this week. Below is a look at some of the major releases, but Nvidia earnings scheduled for May 22 is the next targeted major release:

  • Tuesday, May 14: Alibaba, Home Depot, Sony
  • Wednesday, May 15: Cisco *
  • Thursday, May 16:Walmart, Baidu, John Deere, Under Armour, Applied Material *

* After the close

A snapshot of the other markets as the North American session begins has oil higher, gold lower.

  • Crude oil is trading up $0.64 or 0.82% at $78.90. At this time yesterday, the price was at $79.88
  • Gold is trading down -$15.69 or -0.67% at $2344.58. At this time yesterday, the price was higher at $2373.07
  • Silver is trading up six cents or 0.22% at $28.20. At this time yesterday, the price was at $28.60
  • Bitcoin currently trades at $63,021. At this time yesterday, the price was trading at $63,021

In the premarket, the Dow is working on its 9th day in a row higher. The S&P and NASDAQ index are higher as well in premarket trading. On Friday the NASDAQ fell modestly, the S&P and Dow Industrial Average average moved marginally higher. A summary of the indices as implied by futures is currently showing:

  • Dow Industrial Average futures are implying a gain of 78 points or 0.17%. On Friday, the index rose for the eighth consecutive day by 125.08 points or 0.32 percent at 39512.85.
  • S&P futures are implying a gain of 12.8 points or 0.25% points or 0.20%. On Friday the index rose 8.62 points or 0.17% at 5222.69
  • Nasdaq futures are implying a gain of 61 points or 0.34%. On Friday the index -5.40. or -0.03% at 16340.87

European stock indices are trading mostly lower. German, France and UK indices all closed at record levels on Friday. Today, those three indices are marginally lower:

  • German DAX, -0.17%
  • France CAC , -0.19%
  • UK FTSE 100, -0.12%
  • Spain's Ibex, -0.14%
  • Italy's FTSE MIB, +0.21% (delayed 10 minutes). The index is up 3.23% this week.

Shares in the Asian Pacific markets were mixed/higher:

  • Japan's Nikkei 225, -0.13%
  • China's Shanghai Composite Index, -0.21%
  • Hong Kong's Hang Seng index, +0.80%
  • Australia S&P/ASX index, was 0.01%

Looking at the US debt market, yields are higher. Today the U.S. Treasury will auction off 30-year notes. Earlier this week, the 3- year note 10-year notes were auctioned with average (10 year) to slightly better than average (3-year) demand.

  • 2-year yield 4.848%, -2.0 basis points. At this time yesterday, the yield was at 4.87%.
  • 5-year yield 4.496% -2.1 basis points. At this time yesterday, the yield was at 4.482%
  • 10-year yield 4.484%, -2.0 basis points. At this time yesterday, the yield was at 4.466%
  • 30-year yield 4.69%, -1.6 basis points. At this time yesterday, the yield was at 4.610%

Looking at the treasury yield curve spreads:

  • The 2-10 year spread is at -36.4 basis points. At this time yesterday, the spread was at -36.1 basis points.
  • The 2-30 year spread is at -21.7 basis points. At this time yesterday, the spread was at -21.7 basis points.

European benchmark 10-year yields are lower today.

Europe
European benchmark 10 year yields