The JPY is the strongest and the AUD is the weakest as NA traders enter for the day

Technical Analysis

The USD is mostly/modestly higher

As North American traders enter for the day, the JPY is the strongest and the AUD is the weakest.  US – China relations are weakening.  Pres. Trump on Fox today has said that globalization is over. Pres. Trump is also started to badger Fed chair Powell into moving to negative rates, although all Fed officials who spoke this week were not in favor of using that as a tool in their toolbox. Fed chair Powell and billionaire investor David Tepper has poured water on the idea that a V recovery is forthcoming. Tepper called the market overvalued. Fed’s Powell spoke more danger from the coronavirus lies ahead, and passed more of the buck to the fiscal side.  The Dems and GOP are getting more at odds at each other rather than being cooperative which could throw a monkeywrench into that idea (elections are getting closer).

The USD is mostly/modestly higher

The ranges and changes are relatively modest today and the prices of major pairs and crosses are trading off extreme levels. The largest trading range versus the US dollar 61 pips for the GBPUSD. The USDJPY is a narrow range of only 32 pips.  The JPY crosses are lower as stocks and yields move to the downside on risk fears (from China and slower growth).

The ranges and changes for the major currency pairs
In other markets:

  • Spot gold is trading down $ -0.90 or -0.6% at $ 1715.43. The high price reached $ 1720.44. The low price has extended to $ 1711.48
  • WTI crude oil futures for July delivery is trading up $ 0.85 or 3.35% at $ 26.54. The high price reached $ 27.12. The low price extended to $ 25.56. The IEA said that now expects the oil demand to fall by an average of 8.6% this year which although shocking is still less than the decline that it hits previously forecasted. The June contract is trading up $ 0.75 or 2.97% at $ 26.03

In the premarket for US stocks the futures are implying a lower opening

  • Dow industrial average -160 points
  • S&P index -18 points
  • NASDAQ index -55 points

in the US debt market, yields are continuing the move to the downside,. with the 30 year yield leading the way that -4.3 basis points. The yield curve is flattening with the 2-10 year spread narrowing to 46.48 basis points from 49.36 basis points at the close yesterday. 

US yields are lower

In the European debt market the benchmark 10 year yields are trading mixed around unchanged levels. The German 10 year is down from 0.5 basis points. The France 10 year is up 0.3 basis points.

European yields are mixed

See here for global coronavirus case data

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