Reverse what was done yesterday
With the stocks rebounding today after the plunge yesterday saw the Dow lose -1861 points, the Nasdaq -527 points and the S&P lose -188 points, the forex market has flipped around and has the AUD, CAD and NZD as the strongest and the JPY, CHF and USD as the weakest. The difference is the magnitude of the reversal is less as the stock gains are less than yesterday’s fall. It is Friday. That can contribute to messy markets especially if there are increasing uncertainties.
Looking at the ranges and changes, the JPY crosses are higher. The ranges are pretty good relative to the 22 day average. The JPY pairs are all above the 22 day average ranges. However, the pairs did go lower first before snapping back and rebounding. The currencies vs the USD also saw price action above and below the unchanged level today with most pair’s ranges above (or near) the 22 day average ranges.
In other markets:
- Spot gold is rebounding higher with a gain of $7.60 or +0.44% at $1735.18
- WTI crude oil futures are trading up $0.17 or 0.47% at $36.50
In the premarket for the US stocks, the futures are implying a partial rebound of the sharp moves lower yesterday
- Dow is up 464 points
- S&P is up 52 points
- Nasdaq is up 147 points
In the European equity markets the major indices are also trading lower for the 4th consecutive day
- German DAX, +0.5%
- France’s CAC, +1.7%
- UK FTSE, +1.0% despite GDP of -20.4%, manufacturing production -24.3% and construction -40.1% – all worse than expectations
- Spain’s Ibex, +1.1%
- Italy’s FTSE MIB, +1.0%
In the US debt market the yields are modestly higher after a steady decline this week. The yield curve is also rebounded modestly with the 2 – 10 year spread rising to 50.9 basis points from 47.2 basis points yesterday
In the European debt market, the benchmark 10 year yields are mostly lower.