USD is mixed
As North American traders enter the GBP is the strongest. The AUD is the weakest. The USD is mixed. UK Brexit secretary Raab’s said he is still confident of a Brexit deal (we’ve heard that before). Nevertheless, the GBP pairs have sent that currency higher and it trades at the session high vs the other major currencies. AUD is worried as China announced this weekend, that the trade meeting was off for this week. The latest round of tariffs between the US and China go into efferct today with US slapping tariffs on $200B and China putting tariffs on $60B. The AUD has recovered off lows, but is still the weakest currency on the day.
The changes and ranges snapshot is showing the GBP pairs are trading near the day’s extreme. Those pairs also have the largest trading ranges as well. The other major pairs vs the US have below the 22 day average trading ranges.
In other markets, a snapshot at the start of the day shows:
- Spot gold is up $0.73 or 0.06% at $1199.74
- WTI crude oil is up $1.27 or 1.79% on OPEC+ news over the weekend that members won’t be increasing output any time soon.
- Bitcoin on Coinbase is down -$72 at $6599.52
In the US pre-market futures trading, prices are implying a lower opening:
- Dow is down -46 points
- S&P is down -6 points
- Nasdaq is down -42 points
European shares are lower too (Asian shares fell too).
- German DAX, -0.3%
- France’s CAC -0.2%
- UK’s FTSE, -0.2%
- Spain’s Ibex, -0.6%
- Italy’s FTSE MIB -0.6%
In the US debt market, yields are higher. The 2-10 yield curve spread is up 0.4 bps to 26.72 bps.
In the 10 year benchmark note sector in Europe, yields are higher in varying degrees: