February 3, 2023

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The NZD is the strongest and the USD is the weakest as NA trader enter for the day

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The dollar falls, gold higher, yields lower, stocks higher

As the NA session gets underway, the NZD is the strongest and the USD is the weakest. The greenback continues it’s move lower as Fed officials continue to downplay inflation. Gold is higher. Stocks are higher, erasing yesterday’s declines. US yields are modestly lower.  Oil is modestly higher building on the gains from yesterday and Bitcoin is up modestly, erasing earlier declines.  US building starts and housing starts will be released at the bottom of the hour.  Fed;s Kaplan speaks (at 11.05 AM ET). In the UK, BOEs Bailey, Broadbent and Ramsden will all speak as well (at 10 AM ET).

The dollar falls, gold higher, yields lower, stocks higher
Looking at the ranges and changes below, the ranges are relatively solid with the dollar spending nearly all of the day moving lower (there were only small gains on the day at the highs – and near the start of the day). The GBPUSD has moved the most ticks with a gain of 72 pips. The pair looks to retest the 1.4240 high for 2021 from February 24. The EURUSD is trading at it’s highest level since February 25th (that Feb 25 high comes in at 1.22424 with the pair at 1.22217 currently).  The USDCHF is taking out its May low at 0.8978 and is also at the lowest level since February.  The USDCAD makes a new cycle low (and low for the year). It trades to its lowest level since the week of May 17.2015. 
The ranges and changes for the major currency pairs
In other marketss:
  • Spot gold is trading up $4.78 or 0.26% $1871.67.The price of gold continues to react to the lower dollar and trades at the highest level since January the
  • Spot silver is up $0.37 or 1.35% at $28.55
  • WTI crude futures are up $0.30 or 0.45% $66.57
  • Bitcoin is trading up $1.80 or 0.42% of $45,022

In the premarket for US stocks, the major indices are higher led by the NASDAQ index:

  • the Dow +76 points. The index fell -54.34 points yesterday
  • the NASDAQ +84 point. The index fell -50.93 points yesterday
  • S&P index up 9.25 points. The index felt -10.56 points yesterday.

In the European equity markets, the major indices are mostly higher with Spain the exception:

  • German DAX, +0.19%. Yesterday the index fell -0.13%
  • Francis CAC, +0.1%, yesterday the index fell -0.28%
  • UK FTSE 100 +0.3%, yesterday the index fell -0.15%
  • Spain’s Ibex, -0.25%, yesterday the index rose 0.11%
  • Italy’s FTSE MIB, +0.28%. Yesterday the index rose 0.39%

a snapshot of the US debt market shows yields are lower with a marginally flatter yield curve. The 2-10 you spread is down to 148.55 basis points from 149.57 basis points of the close yesterday. 

US yields are lower In the European debt market, the benchmark 10 year yields are lower across the board.
European yields are lower

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