The USDJPY is the strongest and the GBP is the weakest as NA traders enter

Technical Analysis

The risk on flows are dominant today

As stocks resume wilting, the risk on flows are dominant.  Ranking the strongest to weakest, the JPY, USD and CHF are the strongest, while the AUD, NZD and GBP are the weakest.  The GBP is particularly troublesome as Brexit, coronavirus concerns, medical infrastructure concerns, financial concerns all weigh on the pound. The GBPUSD is trading comfortably below the 1.200 level now (at 1.1920) and cracked below the 1.1900 level to a low of 1.18704.  Ouch him.

The risk on flows are dominant today

The ranges and changes actually show the some of the currency pairs versus the US dollar are below their 22 day averages (rising 22 day averages that is). The EURUSD, USDJPY and USDCHF are all “relatively” tame (see lower chart below. Red line is the 22 day range).  The snapshot shows the USDCAD trading near the highs and the AUDUSD and NZDUSD near the lows.  As mentioned, the GBPUSD is down sharply, but is seeing an early NA session bounce (for now) in volatile trading.  

The ranges and changes for the major currency pairs
In other markets, the snapshot is showing:
  • spot gold is trading down about $ 10 or -0.66% $ 1518.10
  • WTI crude oil futures are trading down $ -2.34 or -8.72% at $ 24.60. It continues to weaken and weaken.  Yesterday Goldman lower their price forecast to $ 20 a barrel

In the premarket for US stocks, major indices in the US are down over 5% according to their ETF’s. The futures are down the daily limit and have stopped trading until the open:

  • S&P index -5.74%
  • NASDAQ index -5.15% (looking at the QQQ)
  • Dow, -5.83%

in the European equity markets, the snapshot currently shows:

  • German DAX, -5.3%
  • France’s CAC, -5.67%
  • UK’s FTSE 100, -5.07%
  • Spain’s Ibex, -4.05%
  • Italy’s FTSE MIB, -2.5%

In the US debt market yields are debt market mixed with the yield curve steepening:

US yields are mixed with the yield curve steepening

In the European debt market, the 10 year benchmark yields are moving higher as investors shun debt instruments on fears of credit changes.  France’s 10 year is up to 0.36% after reaching a high yield of 0.516% earlier in the day:

European benchmark 1 higher 0 year yields are

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