The JPY is the strongest and the NZD is the weakest as the North American session begins.
The USD is higher vs the commodity currencies but losing value vs the JPY as stocks and yields move lower again.
The markets are nervous as central banks move toward a more tighter policy. The UK raise rates by 0.15 basis point yesterday. The Bank of Mexico increase rates by 50 basis points versus estimates of 0.25 basis points. The DOJ signaled that it will stop its purchases Corp. bonds commercial paper in March (as planned). The ECB yesterday confirmed that they will taper their quantitative easing from March 2022. The Fed is speeding up there taper process as they gear up for up to three tightenings in 2022. Fed's Daly and Feds Waller are expected to speak later today. PS NY Fed Pres. John Williams will be speaking soon on CNBC. The wraps are off the Fed officials after their meeting this week.
Technology stocks remain under pressure with the NASDAQ index moving lower in premarket trading.
Omicron continues to be a focus. China has started to react which has the market non-edge as supply chains could tighten once again (more).
Crude oil futures are lower after a run up yesterday saw the price settle at $72.38 up $1.51 or +2.38%. The current price is trading at around $71.
In other markets as the North American session begins
- Spot gold is up $13.81 after rising near $20 yesterday. It is currently trading at $1812.50 up 0.77%.
- Spot silver is up $0.12 or 0.54% $22.59
- WTI crude oil futures are trading at $71, down $1.38
- bitcoin is trading at $47,078.. It is testing its 200 day moving average at $47,030
In the US stock market the futures are implying a lower levels:
- Dow industrial average is down -20.64 points after yesterday's -29.79 point decline
- S&P index is down -17.67 points after yesterday's -41.18 point decline
- NASDAQ index is down another 149.44 points after yesterday's -385.15 point decline
In the major European equity markets, the major indices are also trading lower:
- German DAX, -0.9%
- France's CAC -1.2%
- UK's FTSE 100, unchanged
- Spain's Ibex, -0.9%
- Italy's FTSE MIB -1.4%
US yields are moving lower across the yield curve with the yield curve flattening. The 10 year yield is down -3.4 basis points while the 30 year is down -4.0 basis points in the morning snapshot.
In the European debt market, the benchmark 10 year yields are also moving lower with the France yield back below the 0.0% level at -0.032%.
