The NZD is the strongest and the CHF is the weakest as NA traders enter for the day

Technical Analysis

The USD is mixed ahead of the US employment report

As the market maneuver ahead of the US employment report which is expected to show a -7.5M decline in jobs with the unemployment rate reaching 19% (from 14.7% last month), the NZD is the strongest and the CHF is the weakest.  The USD is down/mixed with modest gains vs the EUR, JPY and CHF and declines vs the GBP, CAD, AUD and NZD.  Stocks are higher and risk on flows dominate with the Dow stocks leading the way. Boeing continues its run higher with a pre-market gain of 4.5%. Boeing carries a big weight in the Dow so its moves give a big boost (or cause a big decline) in the weighted Dow index.  

The USD is mixed ahead of the US employment report

The snapshot of the ranges and changes is showing mixed results. Versus the USD, the GBP has the largest trading range at 107 pips. Most of the day the pair spent above the unchanged line, but the price is off the highest levels (up 48 pips). The USDCAD is trading at its session lows ahead of its employment statistics at 8:30 AM ET (est -500K iwith the unemployment rate expected to rise to 15% from 13.0% last month).  The USDCAD fell below its 100 day MA at 1.34629 in the current hourly bar on the way to the lows.  The AUDUSD and NZDUSD (the strongest currencies) are higher but off the highs for the day too.  . The JPY pair (which tend to move higher with stocks) are higher although the EURJPY is trading near unchanged.  

The ranges and changes for the major currency pairs

In other markets:

  • Spot gold is trading down $ -9 or -0.53% at $ 1704.99
  • WTI crude oil futures are trading down up $ 0.95 or 2.54% at $ 38.36. The reports that OPEC+ will extend the production cuts for one more month

In the premarket for the US stocks the futures are and implying a higher opening up 26 points

  • Dow is up 329.18 points
  • S&P is down 9 points
  • Nasdaq is 14.5 points

In the European equity markets the major indices are trading higher. 

  • German DAX, +1.64%
  • France’s CAC, +1.9%
  • UK FTSE, +1.1%
  • Spain’s Ibex, +2.2%
  • Italy’s FTSE MIB, +1.5%

In the US debt market the yields continued to move higher. A combination of increased hope for a recovery and the huge debt load the US is helping to push yields higher. The 10 year yield broke above the highest high since April in trading yesterday and continues the move to the upside with a 5 basis point gain today. The snapshot is also showing the yield curve steepening with the 2 – 10 year spread rising to 67.12 basis points from 62.94 basis points.

US yields are higher
In the European debt market,the France’s 10 year benchmark yield is up 1.3 basis points and trades back above 0.0% at 0.012%. German yields are up 2.5 bp. Spain and Portugal have modestly lower yields while in Italy, the yield is unchanged.  
European yields are mixed

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