EURUSD, GBPUSD trades near lows at start of the day
As North American traders enter for the day, the USD is the strongest and the GBP is the weakest. The GBP has been hurt by weaker than expected inflation data. The dollar continued follow through buying on the back of Fed Governor Powell's positive report in front of the Senate yesterday and the Fed's expectations to continue the gradual rate hikes. The UK is expected to hike in August. Does the PM May/Brexit issues and weaker inflation put a delay on that idea (is it a dovish hike?).
The EURUSD and the GBPUSD price change is showing the pair is trading near the lows. As I type, the USDJPY is moving to a new low for the day and back into the red. The USDCAD is also marching higher. The GBPUSD range is outpacing the 22 day average and leads the way among the majors. The JPY crosses are also trading near lows now.
In other markets:
- Spot gold is trading down $4 or -0.33% at $1223.50
- WTI crude oil futures are trading down $.53 for my 0.70% at $67.55. weekly inventory data will be released later that day.
US that market yields are lower.
In Europe, the 10 year yields are mixed:
The premarket futures trading levels are implying a lower opening
- S&P index is down -2.10 points
- NASDAQ indexes down -10.39 points
- Dow Jones industrial average is down -10.89 points
In Europe:
- German Dax is up 0.5%
- France's CAC is up 0.4%
- UKs FTSE is up around 0.6%
- Spain's Ibex is unchanged
- Italy's FTSE MIB is down -0.2%
Finally, bitcoin continues its move higher after surging around 10% yesterday. The digital currency is higher by $125 at $7440. The price extended to $7545 today and in the process is getting closer to its 100 day moving at $7608.77. The price has not closed above its 100 day moving average since May 10th (blue line in the chart below). The level should give traders a cause for pause, but the digital currency finally has some upside technical momentum (see post from a few days ago) and the media is picking up on it as well.
