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

Technical Analysis

The USD continues its move lower after Friday’s NFP decline

The AUDUSD is the strongest and the USD is the weakest of the major currencies as the markets continue to digest the weaker than expected jobs report from Friday. The USD was the weakest of the major on Friday. and in the morning snapshot, it is the weakest today. However, the snapshot is also showing that the major currencies are scrunched together. So what is the picture now, may be quite different in a few minutes.  

The ranges and changes are showing ups and downs and modest ranges.  Each of the major currency pairs vs the USD are well below the 22 day averages with the GBPUSD (63 pips) the most active. The EURUSD and USDCHF only have ranges of 31 and 30 pips respectively – well below the 22 day averages. There is room to roam in each today.  Each pair has also spent some time below and above the 0 line with the most recent move on the dollar selling side of unchanged.  

In other markets:

  • Spot gold is trading down $6.01 or -0.32% at $1885.20
  • Spot silver is trading down $0.19 or -0.71% at $27.59
  • WTI crude oil futures are trading down $0.18 or -0.26% at $69.44
  • Bitcoin is trading down up $413 or 1.15% at $36,380.53

In the premarket for US stocks, the major indices (implied by the futures) are trading mixed (marginal changes).  The G7 announced a global minimum tax plan of 15% which impacts the big cap tech companies (Facebook, Amazon, Google, Microsoft).  However, it still has to pass the G20.  The news seems also to have been discounted by the markets.

  • Dow industrial average +48 points after Friday’s 179.35 point gain
  • S&P index up down 0.44 point after Friday’s 37.04 points gain
  • NASDAQ index down -20 points after Friday’s 199.98 point rise

In the European equity markets, the major indices are trading higher across the board with the German DAX lagging at unchanged

  • German DAX, unchanged
  • France’s CAC, +0.3%
  • UK’s FTSE 100, +0.4%
  • Spain’s Ibex, +0.4%
  • Italy’s FTSE MIB +0.8%

In the US debt market, the yields are higher after Friday’s decline (10 year yield fell -6.8 basis points on Friday).

In the European debt market, the benchmark 10 year yields are trading higher as well. The German 10 year yield is up to -0.196%. France’s 10 year has risen to 0.171%.