Flows of “risk over” dominate
The NZD is the strongest and the USD is the weakest, as North American traders enter for the day. The moves look like a classic “risk over” variety with both the NZD and AUD moving higher and the USD and JPY weaker. However, weaker industrial production is rumored to be giving traders some “sell the dollar” tendencies. Meanwhile, the NZD benefits from the stronger inflation published yesterday. The central bank of that country has already adjusted by 0.25 basis points and is expected to do more in future meetings. PS: The NZDUSD moved above its 200-day moving average today at 0.7097. The AUD followed the leader despite expectations that the RBA has been on hold for some time, but things are opening up there. Today, the housing starts and building permits will be announced at 8:30 a.m., but the Fed’s speech will also be a focus with Feds Harker, Daly, Barkin, Bowman, Bostic and Waller, all scheduled. to talk. Netflix will release earnings after closing.
In other markets:
- Spot gold is trading at $ 17.21 or 0.97% at $ 1781.54
- Spot silver rose $ 0.72 or 3.06% to $ 23.88
- WTI Crude Oil Futures Up $ 0.90 or 1.1% to $ 83.23
- Bitcoin is trading around $ 190 and $ 62,224
In the pre-market for US equities, the major indices are on the up after yesterday’s mixed results (the Dow fell, breaking a two-day winning streak). Futures are involving:
- Dow Industrial Average +175.39 points after yesterday’s -36.15 point decline
- NASDAQ Index +65 points after yesterday’s gain of 124.47 points
- S&P Index +21.5 points after yesterday’s gain of 15.09 points
In European equity markets, the major indices are also trading modestly higher after yesterday’s widespread declines:
- German DAX, + 0.15%
- France CAC, unchanged
- UK FTSE 100, + 0.1%
- Ibex of Spain, + 0.6%
- Italy’s FTSE MIB + 0.3%
In the US debt market, the benchmark yields are mixed with the short and the lowest today and the longest end is the highest (steepest yield curve).
In the European debt market, yields are trading higher and the German holding is trading up -0.125%, an increase of 2.4 basis points. That’s close to its high for the day and well below the low at -0.173%.
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