FOMC day. The USD is higher (and so are rates).
The FOMC will announce their interest rates decision at 2 PM ET today/1600 GMT, and the bond traders is certainly looking to press Powell into addressing rates/inflation perhaps a little more. Yields are up about 5 bp in the 10 year at the moment. As far as the rankings of the major currency pairs, the GBP is the strongest, while the AUD is the weakest. The USD is just behind the GBP as the 2nd strongest of the majors in the morning snapshot. Gold is up. Oil is down. Bitcoin is down and stops are mostly lower (the Dow futures are trading above and below unchanged/ the Nasdaq is down sharply).
Looking at the ranges and changes, the forex pairs are not showing a lot of life ahead of the decision. The ranges in the pairs vs the USD are mostly 40 pips or lower (the GBPUSD is at 52 pips but the rest are 40 or lower). The USDJPY has only a 25 pip trading range but the pair is still near highs for the day at +20 pips on the day. The EURUSD, USDCHF , USDCAD, AUDUSD and NZDUSD are all near dollar high levels for the day at the start of the session. The GBPUSD moved higher earlier in the London session, but has since backed off.
In other markets:
- Spot gold is trading down $1.10 or -0.06% at $1730.25
- Spot silver is down six cents or -0.25% $25.87
- WTI crude oil futures are trading down $0.55 or -0.86% at $64.25
- The price of bitcoin is trading down $-1956 or -3.47% at $54,422
In the US stock market, the Dow broke a seven day win streak yesterday. The NASDAQ index detail a small gain after being up large and giving back all the gains (it closed up 11.858 points). Currently, the futures are implying a mixed opening today:
- Dow up 28 points
- S&P up -14 points
- The Nasdaq is -142 points
IN the European equity markets, the major indices are lower:
- German DAX, unchanged
- France’s CAC, -0.25%
- UK’s FTSE 100, my 0.56%
- Spain’s Ibex, -0.87%
- Italy’s FTSE MIB, -0.2%
In the US debt market, yields are higher with the 10 year up the most. Yesterday the U.S. Treasury successfully auctioned off 20 year notes with strong demand, but that is not influencing the move higher in rates today. The 2– 10 year spread is also wider at 150.87 basis points versus 146.89 basis points at the close yesterday:
In the European debt market, the benchmark 10 year yields are also higher across the board with UK yields up the most at +4.8 basis points: