As the North American session begins, the EUR is the strongest and the NZD is the weakest.
The NZD's move to the downside comes after/despite the RBNZ became the first of the major country to raise rates by 50 basis points. Their hike sent the NZDUSD up to the 200 hour MA and 200 day MA near 0.6900, and then rolled over and has trended lower since that test. The pair is now trading below the 100 day MA at 0.6782 and trades at the lowest level since March 15. The BOC is announcing their rate decision today and are also expecting to raise by 50 BPs. Stay tuned.
The US PPI will be released at the bottom of the hour. The expectations are for a 1.1%/10.6% for the headline MoM and YoY numbers. The ex food and energy are expected at 0.5%/8.4% for its MoM and YoY numbers. Yesterday the US CPI rose to a 40 year high.
Earnings season was kicked off with JPMorgan Chase earnings today. Earnings were less than $2.70 estimate ($2.63 est), but revenues were better at 31.7B vs 30.5B estimate. CEO Dimon said he does not expect a recession but the Ukraine war threatens the economy and increases the chances of a recession.
The US stocks are higher but off pre-market high levels. Oil is higher. Yields are mixed/modestly changed.
In other markets:
- Spot gold is trading up $13.90 or 0.71% at $1980.34
- Silver is trading up $0.40 or 1.6% at $25.73
- WTI crude oil is trading up one dollar at $101.69
- Bitcoin is trading below the $40,000 level at $39,820.77
In the premarket for US stocks, the major indices are little changed. The S&P and NASDAQ are working on a three day decline:
- Dow industrial average is trading near unchanged after yesterday's -87.74 point decline
- S&P is trading up 4.8 points after yesterday's -15.08 point decline
- NASDAQ index is up 35.51 points after yesterday's -40.38 point decline
In the European equity markets, the major indices are mostly trading lower:
- German Dax, -0.84%
- France's CAC, -0.7%
- UK's FTSE 100 -0.1%
- Spain's Ibex, +0.2%
- Italy's FTSE MIB, -0.4%
