The EUR is the strongest and the NZD is the weakest as the NA session begins. The USD is the stronger. The ECB will be meeting today and announce their launch trajectory of 25 or 50 basis points at 8:15 AM ET. Lagarde press conference will begin at 8:45 AM ET. The Nord Stream 1 pipeline is back on line which is good news, but Italy PM Draghi has been successful in his quest to quit after coalition support fell short of his expectations. Italy Pres. Matterella can call an election in September or October and/or look to cobble forward until the election next year. He has asked Draghi to help as a caretaker in the transition.
NZD is weaker after reporting weaker than expected trade data. The Bank of Japan kept rates unchanged and reiterated their yield curve control policy. The USDJPY is back higher after dipping earlier in the day.
US stocks are marginally lower (Nasdaq was higher earlier today). Tesla reported higher EPS but lower revenues after the close. The companies shares are up about $20 in pre-market trading.
IN other markets:
- spot gold is trading down $12 or -0.69% at $1684.40.
- Spot silver is trading down $0.32 or -1.74% at $18.31.
- WTI crude oil is trading down $-4.38 at $95.50
- bitcoin is trading down $1031 or -4.36% at $22,639.75
in the premarket for US stocks, the futures are implying a lower opening:
- Dow industrial average is down -76 points after yesterdays 47.79 point rise
- S&P index is down -4 points after yesterdays 23.19 point rise
- NASDAQ index is now trading up about 23 points after yesterdays 184.5 point rise (it was lower earlier)
In the European equity markets:
- German DAX is down -75 points or -0.57%
- France's CAC is up 8.28 points or +0.12%
- UK's FTSE 100 is down 28 points or -0.39%
- Spain's Ibex is near unchanged
- Italy's FTSE MIB is trading down 284 points of -1.33%
In the European debt market ahead of the rate decision rates are higher with the Italian yield rising near 20 basis points on the back of Draghi's resignation. Traders will be interested in the ECBs anti-fragmentation tool that they have been promoting to bring yield spreads back in line. The rate move today is not being a help and outlines the difficulty that such a policy may provide.
In the US debt market, yields are trading higher as well
