The USD is stronger
As the North American session gets underway, the CAD is the strongest and the EUR is the weakest. The USD is stronger (and just behind the CAD). The EURUSD is one of the biggest movers with the USD gaining 0.35% as the pair trends lower in the London hours.
It is the last day of the trading month. There may be some flow action as a result. US stocks are lower in premarket, despite Amazon’s blowout earnings (MSFT, APPL, FB, GOOGL and AMZN all reported blowout earnings this week). China did clamp down on financial companies last night which helped to to send Asian stocks lower. The European indices are mixed. US personal income/spending, U of Mich. Final sentiment index, Canada GDP and Indust. and raw Material prices will be released as well. Fed’s Kaplan speaks.
The ranges and changes show modest ranges of 21-36 pips for the USDJPY, USDCHF, USDCAD, AUDUSD and NZDUSD. The EURUSD and GBPUSD ranges of 45 and 57 pips are a little higher but below the 22 day averages. As mentioned the EURUSD is trading near the lows. So is the NZDUSD and AUDUSD and GBPUSD. The USDCHF is at its high extreme (all are pointing to USD higher).
In other markets, as North American traders enter for the day:
- Spot gold is trading down $-3.85 or -0.21% at $1768.52
- Spot silver is down $-0.16 or -0.63% at $25.93
- WTI crude oil futures are correcting lower today after rises over the last few days. The price is down $1.60 or -2.46% at $63.41
- Bitcoin is trading higher today. The digital currency is up $1581 or 2.99% at $54,561
The premarket for US stocks are implying a lower opening despite Amazon’s blowout earnings (the stock is still up over 2%, but Facebook, Apple, Netflix, Alphabet are all lower).
- Dow, -137 points
- S&P, -21 points
- Nasdaq -100 points
In the European equity markets, the major indices are mostly lower:
- German DAX, +0.3%
- France’s CAC, -0.15%
- UK’s FTSE, +0.08%
- Spain’s Ibex, +0.16%
- Italy’s FTSE MIB, -0.59%
In the US debt market, yields are modestly higher with the two and five year unchanged. The 10 and 30 year are up modestly:
In the European market, the benchmark 10 year yields are lower after some solid gains this week: