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The USD is the strongest and the NZD is the weakest as the NA session begins

The USD is the strongest and the NZD is the weakest as the NA session begins. The UK is observing a national holiday as they bury the Queen. The currency markets are still open of course and the GBP is mixed – but lower vs the USD again. Last week, the GBPUSD was one of the major currencies which fell to new session lows (higher USD) for the year and for it, a multi-decade low (going back to 1985). In my weekend video, I look at the major currencies and ask the question Breakout or Fakeout? Take a look.

To start the North American session, the US stocks are continueing their declines across the board. Pres. Biden rattled the China cage when he said the US would us military force if China invaded Taiwan which may be unsettling the markets. Last week, FedEx said the global economies were slowing which also was a shock to the markets. The US yields are higher with the 2 year approaching 4% as investors await the Fed decision on Wednesday. The yield is at yet another high since 2007. The 10 year is higher as well and trading at a new 2022 high and the highest since April 2011. It took out the high from June 2022 at 3.49%.

The Bank of England and the SNB will be meeting this week with expectations for hikes in each (50 UK now and 75 for SNB).

Oil is lower on growth concerns. Bitcoin is lower.

A detailed look at the market levels show:

  • Spot gold is down -$10.70 or -0.64% ast $1663.10
  • Spot silver is -$0.25 or -1.26% at $19.31
  • Criude oil is at $82.73 or down about -$2.00
  • Bitcoin is at $18716. The price on Friday closes at $19802. The low today reached down to $18271

In the premarket for US stocks shows:

  • Dow industrial average -272 points after Friday’s -139.4 point decline
  • S&P is down -36.5 points after Friday’s -28.02 point decline
  • NASDAQ is down minus at 120 points after Friday’s -103.95 point decline

In the European equity markets, the major indices are also trading lower:

  • German DAX, -0.42%
  • France’s CAC, -1.02%
  • UK’s FTSE 100, closed
  • Spain’s Ibex -0.5%
  • Italy’s FTSE MIB -0.8%

In the US debt market,:

  • 2 year yield 3.938%, +7.7 basis points
  • 5 year 3.694%, +6.9 basis points
  • 10 year 3.502%, +5.5 basis point
  • 30 year 3.549%, +3.0 basis point

In the European debt market, the benchmark 10 year yields are higher:

  • Germany 1.805%, +4 point basis points
  • France 2.36%, +4.6 basis points
  • UK, closed
  • Spain 2.55% +2.0 basis point
  • Italy 4.08%, +3.6 basis points