The USD is the strongest and the CHF is the weakest as the NA session begins | Forexlive
The USD is the strongest and the CHF is the weakest as the NA session begins. UK PM Truss is fighting for her political life with a vote of confidence a possibility. The normal threshold for a vote is thought to be increased to 33% of party members. Normally a PM has a 1 year exemption from a VOC. However, that can be changed by the 1922 committee leader Brady. Enough letters for a normal VOC has been received but the higher threshold has not so far. Meanwhile UK inflation came in higher than expectations at 10.1% (0.5% MoM).
Russian aggression continues with drone strikes. The new Russian commander Surovikin in reaction to fighting in Kherson said
- Further actions regarding Kherson to depend on current military and a tactical situation, it is complicated, difficult decisions cannot be ruled out
The comments suggest a more concerted attack which hopefully does not include a nuclear solution as his “difficult decision”him. Meanwhile, one-third of the power plants have been taken offline by Russian attacks.
Both the EURUSD and the GBPUSD are lower. Technicals have contributed with declines in the prices of each taking the pairs below their 100 hour MAs. For the EURUSD the 100 hour MA is at 0.9791 (current price 0.9774) for the GBPUSD, the MA is at 1.12913 (the current price is at 1.1239).
The US stocks have turned negative as US traders enter for the day. The declines come despite above expectations earnings from Netflix with higher than expected subscribers. P&G (up 1.25% in premarket trading) and Travelers (up 1%) both report higher than expected earnings as well earlier today. The broader S&P and Nasdaq have seen gains of around 4% in the first two days of the week. Tesla earnings are after the close. IBM, Lam Research are also reporting after the close.
US yields are higher with the 10 year trading at the highest level this year at 4.098%
A look around the markets is showing:
- spot gold is trading down $17.50 or -1.06% at $1633.92
- spot silver is trading down $0.26 or -1.4% at $18.43
- WTI crude oil is trading at $83.53. That’s up 0.87%
- bitcoin is trading lower at $19,176. The price is trading at $19,550 near the 5 PM time yesterday
In the premarket for US stocks, the major indices are lower for the 1st time in 3 days:
- Dow industrial average -134 points after yesterdays 337.98 point rise
- S&P index is down -20.5 points after yesterdays of 42.03 point rise
- NASDAQ index is down -58 points after yesterdays 96.6 point rise
In the European equity markets
- German DAX -0.14%
- France’s CAC unchanged
- UK’s FTSE 100 -0.28%
- Spain’s Ibex -0.5%
- Italy’s FTSE MIB -0.14%
in the US debt market, yields are sharply higher:
- 2 year yield 4.505%, +6 point basis points
- 5 year yield 4.317% +10.3 basis points
- 10 year yield 4.100%, +10 basis points
- 30 year yield 4.093% +7.2 basis points
in the European debt market, the benchmark 10 year yields are also higher in the morning snapshot: