The JPY is the strongest and the GBP is the weakest as the NA session begins. The USD is just below the JPY as the strongest and the NZD and AUD are trending lower as well.
In the Asian session, Japanese Finance Minister Suzuki escalated his verbal intervention in the yen in remarks today. Suzuki conveyed key points from a meeting he had with US Treasury Secretary Yellen, saying that government has been conveying that rapid yen moves are undesirable, and what's happening now can be seen as rapid moves. He added that FX moves will be monitored closely and “with a sense of urgency”. The USDJPY did move lower but after breaking below the 100 hour MA for the first time since a brief and shallow dip on April 14, but did find support buyers at the 38.2% of the last trend move up from the April 14 low (PS that was the low from yesterday too. PSS. the high today was near the highs from yesterday as well).
In the UK,the FT reported that there is a new master plan to shred the hated breaks it deal. Later the pair fell on the back of retail sales data that came in much weaker than expectations (-1.4% vs -0.3% expected). The break back below the 1.3000 level and below the lows for the year at 1.2971 (trades to the lowest level since November 2020) also gave the pair a shove in the downward direction, The price of the GBPUSD is moving closer to the 50% retracement of the range since the 2020 low at the 1.2828 level. The low today has reached 1.28908 so far, still some 62 pips from the level, but more in traders sites.
Yesterday Powell pretty much endorsed the 50 bp hike at the next meeting. Meanwhile the market is pricing in 3x 50 bps now. Other Fed officials have expressed the desire to get to neutral quicker to stem inflation (housing surge). Today is the last day before the Fed enters the quiet period ahead of their May policy meeting
A look around the markets is showing:
- Spot gold is trading down -$20.91 or -1.06% at $1931.08
- Silver is tradingdown -$0.50 at $24.14
- The price of crude oil is trading -1.45% at $102.35
- The price of bitcoin is trading near unchanged at $40524
In the premarket for US stocks, the major indices are mixed after yesterday's weak close (after strong gains were erased)
- Dow industrial average futures are implying a -93 point decline after yesterday's -368.03 point decline
- S&P index futures are implying a -3.5 point decline after yesterday's -65.79 point decline
- Nasdaq futures are implying a rise of 23 points after yesterdays -278.41 point plunge.
In the European equity markets, the major indices are trading lower in part catch up to the NY lower afternoon levels yesterday
- German DAX, -1.66%
- France's CAC, -1.46%
- UK's FTSE 100 -0.76%
- Spain's Ibex, 01.0%
- Italy's FTSE MIB -1.54%
Looking at the US debt market, the yield curve is narrowing with the 2 year yield higher while the longer end is marginally lower
- 2 year yield 2.75% up 6.0 bps
- 5 year 2.891%, 2.994%, up 1.1 bps
- 10 year 2.906%, -0.7 bps
- 30 year 2.922%, -0.7 bps
.
Trading down anyone points after yesterday's -368.03 point decline trading lower trading near unchanged at $40,519 2.75%