The USD is little changed
As the North American session begins the CAD is the strongest and the CHF is the weakest. The changes are very modest to start the week. China cases for Covid continue to rise sharply (6 month high) which is helping to put a dampening effect on gold/oil (crude is down over -3% and gold is down near -1% and at a 4 month low). The expectations in the US are growing for a earlier action by the Fed after Friday’s stronger than expected jobs report (over 1M new jobs with revisions added), although yields are still somewhat behaved. US stocks are mixed in early trade with the Dow lower, and Nasdaq modestly higher. Recall, the Dow and S&P closed at record levels on Friday.
In other markets, the snapshot if showing:
- Spot gold is trading down $14.54 or -0.83% at $1748
- Spot silver is down $0.33 -1.38% at $23.98
- WTI crude oil futures are trading down $-2.37 or -3.49% $65.60
- Bitcoin is trading up $1847 or 4.29% $45,738. It moved back above its 200 day moving average at $44,983 in the process.
In the premarket for US stocks, the major indices are mixed:
- Dow futures are implying a decline of -110 points
- NASDAQ futures are implying a gain of 10 points
- S&P futures are implying a decline of -7.5 points
In the European equity markets, the major indices are mixed:
- German DAX unchanged
- France’s CAC, unchanged
- UK’s FTSE 100 -0.22%
- Spain’s Ibex, -0.2%
- Italy’s FTSE MIB, +0.4%
In the US debt market, the yields are mixed but modestly changed. The 10 yield is down -0.6 basis point at 1.2820%. The high yield reach 1.307% . The benchmark yield reach near 1.13% at the low last week before moving higher during the week and after the better than expected jobs report.
In the European debt market, the benchmark 10 year yields are lower.
- Germany, -1.8 basis points at -0.471%
- France -2.2 basis point at -0.139%
- UK -0.42 basis points at 0.570%
- Spain -2.1 basis points at 0.225%
- Italy -2.2 basis points or 0.549%