The USD is the strongest and the JPY is the weakest as the North American session begins

Technical Analysis

The strongest to the weakest of the major currencies

As the NA session begins, the USD is the strongest and the JPY is the weakest. However, of note is how scrunched the strongest to the weakest are as traders are taking a wait and see approach ahead of key data releases. It’s a packed horse race as they make the turn for the final straightaway toward the finish line for the week.

Today is employment day with both US and Canada set to release their jobs data at the bottom of the hour. The US is expected to show a gain of 250K jobs in July which would be the lowest job gain since November but still solid given the level of employment. The Unemployment rate is expects at 3.6% and earnings are expected at 0.3%. In Canada, the expectations are for an employment change of 14.2K after a decline of -43.2 last month. The unemployment rate is expected to tick up to 5.0% from 4.9%. Last month part time jobs subtracted -39.1K, while full time jobs dipped -4K.

The jobs will set the tone for the day. Too strong and that would keep the Fed firmly in play for more and more tightening to squawsh inflationary pressures. A weakish number would be just right.

US stocks are near unchanged ahead of the report. US rates are marginally higher.

A snapshot of the markets currently shows:

  • spot gold is down $3 or -0.18% at $1787.74
  • spot silver is down $0.01 or -0.08% at $20.16
  • WTI crude oil is trading up $0.30 $80.81
  • Bitcoin is up $850 or 3.78% $23,361

In the premarket for US stocks, the major indices are little changed. Yesterday the Dow and S&P dipped slightly while the NASDAQ index rose for the 2nd consecutive day

  • Dow industrial average is up 80 points after yesterdays -85.68 point decline
  • S&P index is up 4.25 points after yesterdays -3.25 point decline
  • NASDAQ index is down 2 points after yesterdays 52.42 point decline

In the European equity markets, the major indices are trading mixed:

  • German DAX, +0.07%
  • France’s CAC down -0.36%
  • UK’s FTSE 100 down -0.11%
  • Spain’s Ibex up 0.27%
  • Italy’s FTSE MIB down -0.05%

In the US debt market, yields are marginally higher ahead of the US jobs report. Yesterday, yields move higher than fell into the close

  • 2 year 3.067%, up 0.2 basis points
  • 5 year 2.802%, up 0.6 basis points
  • 10 year 2.699%, +0.9 basis points
  • 30 year 2.982% up 1.4 basis points

In the European debt market, the yields are mostly higher:

Benchmark European yields are higher

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