Risk on trade is the theme today
The AUD, GBP and NZD is higher and the strongest currencies. The JPY, CHF and the USD are the weakest as risk on trades is the theme.
Brexit hope heads into the final lap after the weekend EU/UK summit progress (still a fight ahead within the parliament). Hope for Italy debt reduction. US stocks are hoping for more Christmas momentum from Cyber Monday sales. Hope that Powell eases up a bit later this week (on Wednesday). Then there is hope for G20. There is a lot of hope and helping “risk on” trades today.
The ranges and changes are showing ok ranges. The USD is lower versus most of the major pairs with the exception of the JPY and marginally vs the CHF, but the pairs are off extreme levels in early NY trading.
IN other markets the snapshot shows:
- Spot gold is up $2 or 0.16% at $1225.18
- WTI crude oil is up $0.92 or 1.8% at $51.34 after the plunge last week
- Bitcoin on Coinbase is now down -$140 at #3903. The high reached $4090. The Low reached $3836. Over the weekend the price moved to a new year low at $3457
US stocks are higher in early trading in the US. Futures are implying gains in the major indices.
- Dow, +242 points
- S&P, +26 points
- Nasdaq, +99 point
European shares are also higher:
- German DAX, +1.1%
- France’s CAC, +0.8%
- UK’s FTSE, +0.7%
- Spain’s Ibex, +1.5%
- Italy’s FTSE MIB +2.5%
US yields are higher to start the week:
Italian yields yields are down sharply on hopes of debt reduction that has narrowed the Italy to German 10 year spread to 288 bps. It was in the 330 bp range not last week.
Happy Cyber Monday.