The USD is the strongest and the JPY is the weakest as the NA session begins | Forexlive
As the North American traders enter for the new trading week, the USD is the strongest of the majors, the JPY is the weakest. It is the last day of the trading month which has the Dow on pace for the best month since 1976, and on a 6 day win streak (up 14.4% for the month). However, the major US indices are lower in pre-market trading. European flash CPI came in much higher than expectations at 10.7% vs 9.9% estimate with the core also higher at 5.0% vs 4.8%. Meanwhile GDP dipped to 0.2% from 0.8% last quarter but was slightly better than 0.1% estimate. The combination has the EURUSD trading a bit lower to start the NY session. The pair has support at 0.9900 area where the 200 hour MA is found, as well as the underside of a broken trend line on the daily chart (see weekend forex technical report by clicking here).
Oil prices are lower as traders weigh China curbs once again. Apple’s major iPhone supplier Foxcomm is fighting a Covid outbreak which may impact shipments. Apple shares are trading down about $-1.00 in pre-market trading.
A look at other markets is showing:
- spot gold is trading down $3.78 or -0.23% at $1640.60.
- Spot silver is trading down $0.06 or -0.29% at $19.16
- WTI crude oil is trading down close to dollars at $86.24
- The price bitcoin is marginally higher at $20,680. It traded in a narrow range over the weekend
in the premarket for US stocks, the major indices are trading lower:
- Dow industrial average down -150 points after Friday’s 828.52 point surge
- S&P index is down 20 points after Friday’s 93.78 point rise
- NASDAQ index is down -76 points after Friday’s 309.78 point rise
The European equity markets, the major indices are trading mixed:
- German DAX +0.2%
- France’s CAC -0.23%
- UK’s FTSE 100 -0.27%
- Spain’s Ibex unchanged
- Italy’s FTSE MIB +0.2%
in the US debt market, yields are mostly higher higher with a flatter yield curve:
- 2 year 4.482%, +5 point basis points
- 5 year 4.230% +4.2 basis points
- 10 year 4.035% +2.0 basis points
- 30 year 4.137% -1.2 basis points
In the European debt market, the benchmark 10 year yields are higher as well after the stronger CPI data: