The NZD is the strongest and the EUR is the weakest as the NA session begins | Forexlive

The NZD is the strongest and the EUR is the weakest as the NA session begins. The USD is mixed with little changes vs the EUR, GBP, JPY and CAD. The greenback is lower vs the CHF, AUD and NZD.

The focus today will be on the upcoming release of the Federal Reserve’s late-January meeting minutes at 2 PM ET, as markets seek insights into the future direction of U.S. interest rates. The Fed held rates steady at that meeting and signaled a cautious stance on early rate cuts, with Fed Chair Jerome Powell indicating that reducing borrowing costs by March was not the base case. Recent U.S. inflation data, hotter than expected, has led markets to adjust their expectations, now anticipating the first rate cut of 25 basis points to occur in June/July

Oil prices increased slightly due to ongoing concerns about potential supply disruptions from the conflict in the Middle East, though the rise was tempered by worries over demand. Market participants are keenly awaiting the Fed minutes to understand the future direction of U.S. interest rates, as prolonged high rates could impact economic activity in the U.S. Meanwhile, oil prices continue to find support from the conflict in the Middle East (it is not going away).

US stocks are lower ahead of the key Nvidia earnings scheduled for after the close today. A lot hinges on the results of the earnings.

A snapshot of the markets as the North American session begins currently shows:

• Crude oil is trading down $0.31 or -0.42% at $76.72. At this time yesterday., the price was trading at $77.51
• Gold is trading up $4.86 or 0.24% at $2028.98. At this time yesterday, the price was trading at $2026.59.
• Silver is trading up $0.12 or 0.56% at $23.08. At this time yesterday, the price was trading at $23.10.
• Bitcoin trades at $51,389. At this time yesterday, the price was trading at $52,211.

In the premarket, the US stocks are lower after falling yesterday in the holiday-shortened week. Palo Alto networks shares are down -23.65% in premarket trading as the company or guidance was weaker than expectations. Nvidia earnings after the close:

• Dow Industrial Average futures are implying a decline of -81.12 points. Yesterday, the index fell -64.19 or -0.17% at 38563.81.
• S&P futures are implying a loss of – -14.7 points points. Yesterday, the index fell -30.04 points or -0.60% at 4975.52
• Nasdaq futures are implying a loss of -110.60 points. Yesterday the index fell -144.87 points or -0.92% at 15630.78

In the European equity markets, the major indices are trading mixed:

• German DAX, +0.43%
• France CAC was 0.23%
• UK FTSE 100, -0.75%
• Spain’s Ibex, +0.82%
• Italy’s FTSE MIB, +0.97% (delayed by 10 minutes).

Shares in the Asian Pacific markets were higher mixed with China and Hong Kong leading the way after the rate cut yesterday. China also limited shortselling

• Japan’s Nikkei 225, -0.26%
• China’s Shanghai composite index, 0.97%
• Hong Kong’s Hang Seng index, +1.57%
• Australia S&P/ASX, -0.66%

Looking at the US debt market, yields are moving higher.

• 2-year yield 4.591% -2.1 basis points. At this time yesterday, the yield was at 4.605%
• 5-year yield 4.238% -1.3 basis points. At this time yesterday, the yield was at 4.252%
• 10-year yield 4.265% -1.0 basis points. At this time yesterday, the yield was at 4.277%
• 30-year yield 4.446% -0.4 basis points. At this time yesterday, the yield was at 4.448%
• The 2-10 year spread is at -32.4 basis points. At this time yesterday, the spread was at – 32.5 basis points
• The 2-30 year spread is at -14.5 basis points. At this time yesterday, the spread was at -15.6 basis points.

European benchmark 10-year yields are higher: