The USD is the strongest and the NZD is the weakest as the NA session begins. The dollar is reacting to the more hawkish comments from the Fed officials. No big surprise given the jobs report from the beginning of the month, and inflation reports from this week. Nevertheless, Fed's Mester joined Bullard with chatter about going back to 50 bp hikes potentially. Fed's Barkin and Bowman are scheduled to speak today.
The NZDUSD and the AUDUSD have been trending steadily to the downside, with both approaching their key 200 day MAs on the downside (and finding some stall just ahead of the key MA levels).
- For the AUDUSD, the 200 day MA comes in at 0.6805. The low for the day has reached 0.6811 so far. The current price trades at 0.6829.
- The NZDUSD's 200 day moving average comes in at 0.6186. It's low today reached 0.6193. The current price trades at 0.6206.
The EURUSD has moved to the lowest level since January 6 and has reached the top of a swing area on the daily chart between 1.0573 and 1.0615 (see daily chart below). ECB's Schanbel was more hawkish in her comments today but the EURUSD still moved to the downside as dollar selling continues to dominate.
The GBPUSD has also reached – and fell below - it's key 200 day MA today at 1.1934. The better-than-expected retail sales and of the UK today has been able to stall the fall (+0.5 versus -0.3 estimate). The price has been trading above and below the 200 day moving average and currently trades above it at 1.1955. The low price reached 1.1914.
The USDJPY is trading at the highest level since December 20 after moving above a swing area between 134.49 and 134.76. That area will now be support.
US stocks are trading lower. US yields are higher with the 10 year up 4.9 basis points at 3.892%, but off the premarket high at 3.927% (highest level since November 10). Crude oil is lower as it continues to swing sentiment between more global growth and potential for slower global growth.
A snapshot of the markets are showing:
- Spot gold is trading down -$9.92 or -0.54% at $1826.32
- Spot silver is trading down -$0.21 or -0.97% at $21.36
- WTI crude oil is trading down -$2.38 at $76.36
- Bitcoin is trading at $23,868 after reaching high yesterday $25,270
In the premarket for your stocks, the major indices futures are pointing to a lower opening. Yesterday all major indices fell led by the NASDAQ index
- Dow Industrial Average -144.885 points after yesterday's -431.20 fall
- S&P index is down -25.66 points after yesterday's -57.19 fall
- NASDAQ index is down 106.73 points after yesterday's -214.76 fall
In the European equity markets, the UK FTSE 100 is off its all-time high level reached yesterday. The France's CAC traded to a new all-time high as well yesterday surpassing the swing high from January 5 at 7384.86 (the high price reached 7387.29). However, momentum faded into the close. The current price is back at 7333.16. A snapshot of the major indices shows:
- German DAX is down -0.73%
- France's CAC is down -0.46%
- UK's FTSE 100 is down -0.20%
- Spain's Ibex is down -0.27%
in the Asia Pacific market:
- Japan's Nikkei 225 fell -0.66%
- Hang Seng composite index fell -1.28%
- Shanghai composite index fell -0.77%
- Australia's S&P/ASX index fell -0.86%
In the US debt market, yields are higher:
In the European debt market, the benchmark 10 year yields are mixed. German PPI came in lower than expect at -1.0% versus 0.2% estimate:
It's Friday. TGIF.