More selling of the greenback after the Powell testimony
At the start of the week, the USD was stronger on the back of the follow through buying after the US jobs data. Yesterday, the tide turned with the testimony of Chair Powell who hinted of a rate decline(s). As a result, the dollar fell and we are seeing more selling in the greenback today. It is once again the weakest of the major currencies. The GBP meanwhile is the strongest.
The GBPUSD has trended higher after moving above its 100 hour MA earlier in the day and extending above its 200 hour MAa at 1.25515. We are currently trading just above that MA at 1.2559 after extending up to 1.2571. Staying above keeps the bulllish trend in place. The EURUSD is less lively with only a 30 pip trading range today. However, all the ticks have been in the upward direction (they just are not racing higher. The ECB minutes reiterated the preparation for an ECB ease down the road. The USDCHF is near low. The USDJPY is lower, but correcting off the lows. The NZDUSD and AUDUSD continue to trend higher with the NZDUSD testing its 100 day MA at 0.66797.
In other markets.
- Spot gold is up $1.60 at $1420.56, with a high so far at $1427.28 and low at $1417.69
- WTI crude oil is up $0.21 or 0.35% $60.63. There was a much sharper draw in inventories yesterday which has kept the contract supported
- Bitcoin on Coinbase is trading down -$50 at $11723. The high reached $13200 yesterday. The high today was at $12201 ($1000 lower). The low today reached $11169.
Stock futures in the US are implying a stronger opening:
- Dow is up 108 points
- S&P is up 7.7 points
- Nasdaq iis up 22 points
In the US debt market, yields are little changed with the 2 year down a touch and the 30 year up a touch (yield curve steepening).
In the benchmark 10 year yields in Europe, yields are mixed: