Kickstart the trading day for May 7 with a technical look at the EURUSD, USDJPY & GBPUSD | Forexlive
The USD is higher vs the 3 major currency pairs to start the US session (by differing amounts of course). Overnight, it was announced that the US and China would meet in Switzerland to break the ice on trade. It is a step in the right direction but as many have stressed, the negotiations with China will be drawn out.
The US Federal Reserve will meet today and announce no change in rates. The focus will be on what Fed Chair Powell says and the FOMC statement. There will be no central tendencies or dot plots. For the June meeting, the market is pricing in around a 30% chance of a cut of 25 basis points.
The stocks are higher in reaction after two days of declines to start the trading week. US yields are modestly higher.
The video below looks at the technicals that are driving the 3 major currency pairs.
A snapshot of the US stock market is showing:
- Dow Industrial Average up 264 points after falling -389 points or -0.95%
- S&P up 32 points after falling -43.47 points or -0.77% yesterday
- Nasdaq index up 115 points after falling -154.58 points or -0.87% yesterday.
In the US debt market, the yields are higher:
- 2-year yield 3.815% +2.7 basis points
- 5-year yield 3.920%, +2.3 basis points
- 10 year yield 4.323%, +0.6 basis points
- 30 year yield 4.801%, -1.2 basis points
Looking at other markets:
- Crude oil and is up $0.60 or 1.03% at $59.70
- Gold is rotating back to the downside by -$48 or -1.42% at $3388.70
- Silver is trading down $0.26 or -0.83% at $32.91
- Bitcoin is trading up $173 and $96,987
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