December 7, 2022

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The NZD is the strongest and the JPY is the weakest as NA traders enter fr the day

2 min read

The USD is mixed

as North American traders enter for the day, the NZD is the strongest, while the JPY is the weakest. Japan’s Tankan survey was weaker than expectations. The JPY was the weakest yesterday as it trended lower.  The USDJPY moved to a new 2021 high yesterday, but only by a pip or so (above 111.109). Today, that high was broken with more momentum in the Asian session. The high price reached 111.63 which was just short of the March 2020 high at 111.696. The move higher also was replicated by strong gains in the JPY crosses (JPY going lower especially versus the EUR).

TheJPY is the weakest of the major currencies

Looking specifically at the US dollar, the greenback is mixed with declines versus the NZD (-0.21%) and the EUR (-0.15%), and gains vs the JPY (+0.34%) and the GBP (+0.17%). 

The USD is mixed Taking a look at some of the high to low ranges for the day, underperforming are the USDCHF, USDCAD, AUDUSD, NZDUSD and EURUSD with ranges are below 38 pips on the day (and below their 20 today average trading range (about a month of trading). There is room to roam and those currency pairs. The USDJPY and some of the JPY crosses (EURJPY) have ranges above the 22 day averages today and are more trend like today (although they are coming off extremes).
The ranges for some of the major pairs

In other markets as North American traders enter for the day are showing::

  • Spot gold is trading up $6.94 or 0.39% at $1776.75.
  • Spot silver is up $0.13 or 0.51% of $26.23.
  • WTI crude oil futures are trading up about two dollars or 2.68% at $75.44
  • Bitcoin is down $883 or -2.55% at $33,693.56

In the premarket for US stocks, the Dow is leading the way to the upside today. The NASDAQ is modestly higher:

  • Dow industrial average +119 points. The index rose 210.2 points yesterday
  • S&P index +8.75 points after yesterday’s rise of a 5.7 point
  • NASDAQ index is up 7.8 points after yesterday’s fall of 24.38 points

In the European equity markets, the snapshot shows stronger levels:

  • German DAX +0.3%
  • France’s CAC, +014%
  • UK’s FTSE 100, +0.8%
  • Spain’s Ibex, +1.0%
  • Italy’s FTSE MIB +0.35%

in the US debt market, the yields are higher today with the 10 and 30 year bonds up over three basis points each. The 2-10 year spread is higher at 122.1 basis points versus 119.5 basis points at the close yesterday.

US yields are higher

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