The USD is modestly weaker on Unemployment Day
As North American traders enter for the day, the CAD is the strongest and the NZD is the weakest of the major currencies. The USD is modestly weaker ahead of the US jobs report at 8:30 AM ET where Non farm payroll is expected to rose by 105K vs -140K last month. Canada will also release their labor statistics (the change in employment -40 K vs. -52.7 K last month). . The US Senate adopted bill that allows present Bidens 1.9 trillion stimulus plan to be passed without Republican support… US stocks are higher in premarket trading. Bond yields are also higher with the 30 year moving ever so closer to the 2.0% level. Gold prices are also higher once again.
Looking at the ranges and changes, the low to high trading range for all the major currency pairs are contained. The highest ranges the GBPUSD with a 49 pip low to high range. The the list is the USDCHF at 27 pips. All are well below their 22 day averages. There is room to roam. a special note for the USDJPY from a technical perspective. It moved above its 200 day moving average in the Asian session at 105.569 but failed. After a dip down into the London morning session, the pair has moved back higher and is currently trading at the highs and above that keep moving average. The price has not closed above its 200 day moving average since June 8, 2020.
In other markets:
- spot gold is trading up $4 or 0.22% at $1797.90. The price did extend back above the $1800 level to $1811.38 at the high. The low price reached $1792.19.
- Spot silver is trading up $0.07 or 0.29% at $26.42
- WTI crude oil futures continues its move to the upside. It trades up $0.44 or 0.78% of $56.67
- bitcoin is trading up $306 or 0.83% $37,980. The low price reached $36,605 while the high price extended to $38,177
In the premarket for US stocks, the major indices are trading modestly higher higher:
- Dow industrial average +125 points
- NASDAQ index up +32 points
- S&P index up +15 points
in the European debt equity market, major indices are trading higher. The German DAX is looking for a perfect week with 5 consecutive days higher.
- German DAX, +0.2%
- France's CAC, +1.1%
- UK's FTSE 100, +0.2%
- Spain's Ibex, +1.2%
- Italy's FTSE MIB, +0.2 percent
In the US debt market the snapshot of rates currently shows yields are higher once again with the 30 year yield getting closer to the 2% level. The high yield for the day reached 1.963%. The 10 year is also moving higher by 2.6 basis points to 1.165%
In the European debt market, yields are higher as well. UK yields continue to move higher after the Bank of England decision yesterday.