The risk off trade unwinds a bit today
After a day yesterday that saw the AUD as the weakest and the JPY and CHF as the strongest, the trades are partly being unwound today on the modest rebound in stocks (relative to the tumble yesterday). The snapshot this morning is showing the AUD is the strongest, and the JPY and CHF are the weakest. Gold is a little lower. Crude oil is up a little reversing the trends from yesterday. The PBOC said that the the yuan won’t keep falling.
The JPY has the largest trading range moving 157 pips from low to high. The pair moved lower continuing the trend from yesterday, before moving back higher. We are now off the highs but remain higher in the snapshot. The other pairs vs the US have more modest ranges , but the EURUSD is under pressure (at lows). The NZDUSD and AUDUSD are higher. The NZD was supported by much better employment data overnight.
In other markets:
- Gold is now trading unchanges rebounding from lower levels (down -$8)
- Crude oil is up $0.52 or 0.95% after a -1.71% fall yesterday
- Bitcoin on Coinbase is up $500 at $12228
In the premarket for US stocks, the snapshot shows:
- Dow +137 points
- S&P +13 points
- Nasdaq +49 points
European shares are mostly higher
- German Dax, +0.5%
- Frances CAC +0.8%
- UK’s FTSE, unchanged
- Spain’s Ibex, +0.2%
- Italy’s FTSE MIB, +0.5%
In the US debt market, yields are higher after the tumble yesterday (about -12 bps).
In the European debt market, the benchmark 10 year yields are mostly lower. Below is a snapshot of the changes and ranges: