The USD is the strongest and the JPY is the weakest as the NA session begins | Forexlive

The USD fell sharply last week with helped by a weaker than expected CPI data released on Thursday. Last week was also full of FTX news.

Both events highlight the need for risk controls as “surprises” can really cause havoc to your trading portfolios.

In the weekend forex report I speak to the risk avoidance at FTX which led to their sharp fall into Chapter 11 bankruptcy, and also define the risk and bias levels for the major currency pairs going into the new trading week. It is important to be aware and prepared. So spend some time and become intimate with the key levels in play by watching here:

To start the North American session, the USD is the strongest and the JPY is the weakest of the major currencies. That reverses the end of day positions from Friday’s trading.

Over the weekend, the Fed sent the governor Christopher Waller all the way to Australia to tap the brakes on the euphoria ahead of the US trader arrival this morning (Just kidding, I am sure the trip was long planned). Waller said the Fed will likely slow the pace of hikes, but it is not near the end and warned that the markets were “way out in front”.

That helped to send the USD back to the upside, yields higher and the stocks marginally lower as well to start the trading week

Pres. Biden and China Pres. Xi at the G20 summit. It is a good thing when global leaders have some sort of contact. There has been radio silence following House Speakers trip to Taiwan in the summer.

The US Senate will remain in Democrat control as the close Nevada race was declared going to the Democratic candidate over the weekend. Arizona’s race was also declared pushing the Dems to 50 ahead of the 49 by the GOP with a Georgia runoff election to be determined in early December (one more month of text and email bombardment). Because the VP casts the deciding votes on ties, the advantage remains with the Dems despite a potential 50-50 split. The House control is yet to be officially decided although it is expected to go to the red (GOP), but the advantage is likely to fall well short of the expectations ahead of the elections. It was not the Red Wave that the GOP was hoping for prior.

IN other markets at the start of the trading week:

spot gold is trading down $8.70 or -0.50% and $1762.20.
Spot silver is down $0.11 or -0.54% and $21.58
WTI crude oil is trading at $88.16. That is down $0.80 from the settlement price on Friday
Bitcoin is trading at $16,985. It traded as low as $15,784. During Sunday’s trade it traded as high as $17,240.

In the premarket for US stocks, the major indices are marginally lower after sharp gains on Friday in the broader indices: