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The USD is higher to kickstart the NA session. The USDJPY is the biggest mover | investingLive

The USD is starting the day higher with the JPY the biggest mover with a gain of close to 0.80% as Japan’s Takaichi becomes the PM. The EUR and GBP are both down -0.22% vs the greenback. In the video above, I take a look at the technicals given the move higher in the greenback today and outline the key targets and risk defining levels.

Japan has it’s first female PM after Japan’s LDP leader Takaichi secured enough votes to assume the role (as expected). Takaichi leans dovish on interest-rates. She supports maintaining a loose monetary stance and expansionary fiscal policy, prioritising growth over tightening.

Incoming Japanese Finance Minister Katayama commented that it is desirable for the foreign exchange (FX) market to move in a stable manner reflecting fundamentals, making no comment when asked about potential Bank of Japan (BoJ) interest rate hikes. This sentiment reiterates recent commentary from the outgoing Finance Minister, Kato, who also declined to comment on specific FX levels but noted recently seeing one-sided, rapid moves and emphasized the importance of stability reflecting fundamentals.

Meanwhile Bloomberg, suggests the Bank of Japan is closer to a rate hike, but that there is little need to rush and no urgency to hike rates next week. Current market pricing for a 25 basis point (bps) hike is for a 20% chance next week with a 44.8% chance in December.

The Canada CPI will be released at 8:30 AM with the expectation for 0.0% for the headline MoM and 2.3% up from 1.9% last month.

A snapshot of earnings released this morning shows mostly BEATs on both EPS and Revenues. Northrup Grumman did miss on the Revenues. Overall, earnings so far has been been better than expectations :

  • Lockheed Martin Corp (LMT): EPS of $6.95 (BEAT vs. $6.36 expected) and Revenue of $18.6bn (MET vs. $18.54bn expected).

  • RTX Corp (RTX): EPS of $1.70 (BEAT vs. $1.45 expected) and Revenue of $22.48bn (BEAT vs. $21.38bn expected).

  • Coca-Cola Co (KO): EPS of $0.82 (BEAT vs. $0.78 expected) and Revenue of $12.5bn (BEAT vs. $12.39bn expected).

  • General Motors Co (GM): EPS of $2.80 (BEAT vs. $2.26 expected) and Revenue of $48.6bn (BEAT vs. $45.25bn expected).

  • 3M Co (MMM): EPS of $2.19 (BEAT vs. $2.07 expected) and Revenue of $6.52bn (BEAT vs. $6.24bn expected).

  • PulteGroup Inc (PHM): EPS of $2.96 (BEAT vs. $2.86 expected) and Revenue of $4.40bn (BEAT vs. $4.3bn expected).

  • Northrop Grumman (NOC): EPS of $7.67 (BEAT vs. $6.46 expected) and Revenue of $10.42bn (MISSED vs. $10.70bn expected).

  • GE Aerospace (GE): EPS of $1.66 (BEAT vs. $1.45 expected) and Revenue of $12.18bn (BEAT vs. $10.37bn expected).

The major US stock indices are modestly higher:

  • Dow industrial average +38.42 point
  • S&P index +4.62 point
  • NASDAQ index +11.98 points

Looking at the US debt market:

  • 2-year yield 3.459%, -0.5 basis points
  • 10 year yield 3.978%, -1.0 basis points
  • 30 year yield 4.568%, -1.1 basis point

Looking at other markets,

  • Crude oil is trading up $0.38 at $57.40.
  • Gold is down sharply by $130 or -2.97% at $4226. The price yesterday moved up to test the high prices from October 16 and October 17 of last week and found willing sellers. The price is now below the 100 hour moving average at $4273.16.
  • Silver is down -$2.55 or -4.87% at $49.80
  • Bitcoin is down $-1930 at $108,650