February 4, 2023

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The GBP is the strongest and the JPY is the weakest as NA traders enter for the day

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The USD is lower/mixed

As North American traders enter for the day the GBP is the strongest and the JPY is the weakest of the major currencies. The USD is starting the week/day mixed/lower with declines vs the EUR, GBP, AUD and NZD. The JPY, CHF and CAD are higher. WIth today being the first o of the month the ISM Manufacturing data will be released for April (est 65.0).  Construction spending will also be released.  

The USD is lower/mixed

The ranges and changes show the support/strength for the GBP pairs. On Friday, the GBPUSD ( and other GBP pairs) moved sharply to the downside after extended what had been a very narrow trading range of around 118 pips for the calendar range coming into the day (the range ended at 174 pips. Month end dollar buying may have also helped to goose the pair to the downside.  Nevertheless today, about half of the decline has been retraced.  Today, the GBPUSD, GBPJPY, GBPCHF are all moving higher and trading near high levels for the day. 

The ranges and changes for the major currency pairsIn other markets: 

  • Spot gold is trading up $10.97 or 0.62% at $1780
  • spot silver is up $0.32 or 1.26% or $26.24
  • WTI crude oil futures trading up $0.10 or 0.16% at $63.68
  • bitcoin is up $1600 or 2.8% of $58,650.  Ethereum is gaining more attention as it is up $176 or 5.95% at $3148.95 (and trading at all-time high levels)

In the US stock market, the futures are implying a higher opening after Friday’s declines:

  • S&P index up 23.33 points.  On Friday the index fell -30.30 points
  • The NASDAQ index is up 40.24 points after Friday’s -119.86 point decline
  • Dow is up 210 points after Friday’s 185.51 point decline

In the US debt market, the yields are moving higher with the 10 and 30 year up 2.7 basis points each. The 2-10 you spread is up to 149.03 basis points from 146.75 basis points on Friday.

US yields are higher In the European debt market, the benchmark 10 year yields are mostly higher. The German tenure yield continued its run to the upside and trades at the cycle high at -0.163%.. That is the highest since March 2020.
European yields are mostly higher

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