The GBP is the strongest and the NZD is the weakest as the NA session begins
As the North American session begins, the GBP is the strongest of the major currencies while the NZD is the weakest as it continues to move to new year lows and test the 0.5900 level vs. the US dollar. The NZD is the runaway weakest of the majors. The USD is just behind the GBP as the strongest of the majors as US rates rise ahead of the US interest rate decision tomorrow which the market is expecting a 75 basis point hike. The Bank of England meets on Thursday with the expectations for 50 basis points. Sweden’s Riksbank raise our policy rate by 1% to 1.75% European rates are also higher through the European morning session.. German producer price index for the month searched 7.9% – that is for the month. The expectations was for a 2.5% gain which was big enough. Canada CPI will be released this morning along with US building permits/housing starts (at 8:30 AM ET).
US stocks are lower in premarket trading after the gains yesterday. European indices are also down.The US major indices close near their high levels yesterday after trading lower earlier in the session (close to -1% for the NASDAQ index). Ford warned as result of continued supply chain concerns. They say the supply chain concerns are not chip related but other parts. The have over 40,000 cars at are sitting on the side waiting for parts to complete.
A detailed look at the market levels show:
- Spot gold is down $-6.75 or -0.41% at $1668.75
- Spot silver is down $0.26 -1.35% $19.29
- Criude oil is unchanged at $85.36
- Bitcoin is at $19,230 which is down from the closing level of $19,538
In the premarket for US stocks shows:
- Dow industrial average down 88.68 points after yesterdays 197.26 point rise
- S&P is down -15.0 points after yesterdays gain of 26.56
- NASDAQ is down -58 points after yesterdays 86.62 point rise
In the European equity markets, the major indices are also trading lower:
- German DAX, -0.73%
- France’s CAC, -0.87%
- UK’s FTSE 100, -0.1%
- Spain’s Ibex -0.8%
- Italy’s FTSE MIB -0.77%
In the US debt market, yields are higher across the board,:
- 2 year yield 3.966%, +2.0 basis point
- 5 year 3.730%, +3.7 basis points
- 10 year 3.545%, +5.6 basis points
- 30 year 3.565%, +6.0 basis point
In the European debt market, the benchmark 10 year yields are surging to the upside: