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

The USD is mostly lower

As the market digests the G7 meeting results (stocks moving lower, yields lower, gold is up), the JPY is the strongest followed by the AUD. The CAD and EUR are lower (the EUR was the strongest of the currencies yesterday). The USD is mostly lower in the morning snapshot.  The RBA did cut rates by 0.25% to 0.5% but the AUD did rally despite the rate cut (sell the rumor/buy the fact perhaps). 

The ranges and changes are showing the USDJPY trading at the session lows, the USDCAD near the highs.  The AUDUSD is also near the high after being lower earlier.  The JPY pairs are mostly closer to the lows with the exception of the AUDJPY which is down, but off the low after the rebound higher.

The ranges and changes for the major currency pairs

In other markets:

  • Spot gold is trading up $12.30 or 0.77% at $1601.70. Yesterday gold moved higher after the sharp falls at the end of last week
  • WTI crude oil futures are trading up $0.94 or 2.0% at $47.70 after bottoming yesterday and rebounding to the upside

In the premarket for US stocks, the major indices have dipped to the downside in trading near the overnight lows for the day after the G7 said they are monitoring the markets and ready to take action (including fiscal) is needed:

  • Dow industrial average -255 points
  • S&P index -32.5 points
  • NASDAQ index down -80 points

In the European equity markets, the major indices are still higher as a catch up to the sharp rises in US equities after the close yesterday. They are off high levels however:

  • German DAX, +1.63%
  • France’s CAC, +1.1%
  • UK’s FTSE 100, 1.45%
  • Spain’s Ibex, +1.5% 
  • Italy’s FTSE MIB, +0.9%

In the US debt market yields are lower with the yield curve (2-10 year spread) a little higher (26.74 bps vs 26.03 bps).

US yields are lower

In the European market, the yields are mixed once again (that has been the pattern), but this time, the German, France and UK yields are higher, while investors sent yields lower in Spain, Italy, and Portugal.

European yields are mixed