The strongest to the weakest of the major currencies
At the start of the North American session, EUR is strongest and JPY is weakest.
Yesterday markets were keen that retail giant Target’s inventory glut could herald a slowdown in inflation as a sudden inventory glut forces it and other retailers to cut prices. Today the focus is back on inflation concerns.
- The yields are higher
- Stocks are slightly lower.
- oil is higher.
- The USD is higher.
Within the forex complex, USDJPY continues its run higher (up 1.12% on the day). Yesterday the pair rallied in the Asian session but it consolidated/corrected about 61.8% of the daily range before staging a slight recovery. Today the pair moved above the short-term 100/200 MAs on the 5-minute chart and is trending higher. Looking at the 5-minute chart below, the rebound from the 100-bar moving average was a key cue for buyers to accelerate the trend to the upside. The pair’s 100-bar moving average (blue line on the chart below) is lagging but would need a break below to offer some comfort to the sellers. If that’s not the case, buyers are still in firm control.
USDJPY is trending higher
That EUR USD
EUR USD
EUR/USD is the currency pair that includes the single currency of the European Union, the euro (€ symbol, EUR code) and the United States dollar ($ symbol, USD code). The pair rate indicates how many euros are needed to buy one dollar. For example, if the EUR/USD is trading at 1.2, it means that 1 euro equals 1.2 dollars. Why EUR/USD is the most popular trading pair Compared to all tradable currencies, the euro (EUR) is the second most traded currency in the world, behind only the US dollar. This currency pair is the most traded and liquid currency pair on the market. As the most popular trading pair, the EUR/USD is a staple of any brokerage offering and often has some of the lowest spreads compared to other pairs. Ultimately, the currency follows the two most economical blocs in the world and sees the greatest volume for this reason. The EUR/USD has a variety of factors affecting its prices. On the EUR side, economic data in the Eurozone as well as internal factors in the bloc can slightly influence prices. Even small member states can effectively weigh on the EUR, as demonstrated in Greece during bailout talks in the 2010s. Alternatively, developments in the United States and the Federal Reserve often impact EUR/USD. Many examples include the bailouts during the financial crisis, tax cuts during the Trump administration and the Covid-19 relief effort.
EUR/USD is the currency pair that includes the single currency of the European Union, the euro (€ symbol, EUR code) and the United States dollar ($ symbol, USD code). The pair rate indicates how many euros are needed to buy one dollar. For example, if the EUR/USD is trading at 1.2, it means that 1 euro equals 1.2 dollars. Why EUR/USD is the most popular trading pair Compared to all tradable currencies, the euro (EUR) is the second most traded currency in the world, behind only the US dollar. This currency pair is the most traded and liquid currency pair on the market. As the most popular trading pair, the EUR/USD is a staple of any brokerage offering and often has some of the lowest spreads compared to other pairs. Ultimately, the currency follows the two most economical blocs in the world and sees the greatest volume for this reason. The EUR/USD has a variety of factors affecting its prices. On the EUR side, economic data in the Eurozone as well as internal factors in the bloc can slightly influence prices. Even small member states can effectively weigh on the EUR, as demonstrated in Greece during bailout talks in the 2010s. Alternatively, developments in the United States and the Federal Reserve often impact EUR/USD. Many examples include the bailouts during the financial crisis, tax cuts during the Trump administration and the Covid-19 relief effort.
Read this term is higher against all major currencies ahead of ECB interest rate decision tomorrow. The central bank is expected to leave interest rates on hold as it plans to scale back its asset purchase program and start rate hikes in July. Markets will focus on whether there is evidence of a 50 basis point launch. Yesterday, the Reserve Bank of Australia hiked rates by more than expected 50 basis points. Overnight, the Reserve Bank of India hikes rates by more than expected 50 basis points to fight inflation. The EURJPY is the strongest of the currencies
currencies
Currencies tend to be a widely used form of money as they are the primary medium of exchange in terms of buying and selling goods and services. These are often issued by a specific government or collection of governments in the form of paper notes and coins. Other forms of currency include earlier metals like gold and silver and digital currencies like bitcoin. Currencies serve as the backbone of the economy of the country or countries due to the value perception of the population using that currency. For example, the US dollar (symbol $, code USD) or the British pound sterling. (symbol £, code GBP), also known as fiat money as they are not tied to any specific asset such as gold or silver. Such metals were traditionally used as the main means of payment, as they had real and actual value. Even after the introduction of paper notes, many countries maintained a gold standard for much of the 20th century, meaning that a unit of money could be exchanged for a fixed amount of gold. How are currencies traded? The modern world with the invention of electronic networks, computers and the internet has enabled money transfers to be almost instantaneous. It has also ushered in a new era of currencies including digital money like Bitcoin and Litecoin. The ubiquity of the internet, unsupported by any government but based on a complex set of mathematical software algorithms, has sparked interest and acceptance of digital currencies while maintaining relative anonymity. Digital currencies can also now be traded online through exchanges and brokers, similar to trading foreign currencies, known as the foreign exchange market. With a turnover of over $5 trillion per day, Forex is the largest market in the world where fiat currencies are bought and sold against other currencies such as For example, the euro against the dollar (EUR/USD) and the pound sterling against the Japanese yen (GBP/JPY).
Currencies tend to be a widely used form of money as they are the primary medium of exchange in terms of buying and selling goods and services. These are often issued by a specific government or collection of governments in the form of paper notes and coins. Other forms of currency include earlier metals like gold and silver and digital currencies like bitcoin. Currencies serve as the backbone of the economy of the country or countries due to the value perception of the population using that currency. For example, the US dollar (symbol $, code USD) or the British pound sterling. (symbol £, code GBP), also known as fiat money as they are not tied to any specific asset such as gold or silver. Such metals were traditionally used as the main means of payment, as they had real and actual value. Even after the introduction of paper notes, many countries maintained a gold standard for much of the 20th century, meaning that a unit of money could be exchanged for a fixed amount of gold. How are currencies traded? The modern world with the invention of electronic networks, computers and the internet has enabled money transfers to be almost instantaneous. It has also ushered in a new era of currencies including digital money like Bitcoin and Litecoin. The ubiquity of the internet, unsupported by any government but based on a complex set of mathematical software algorithms, has sparked interest and acceptance of digital currencies while maintaining relative anonymity. Digital currencies can also now be traded online through exchanges and brokers, similar to trading foreign currencies, known as the foreign exchange market. With a turnover of over $5 trillion per day, Forex is the largest market in the world where fiat currencies are bought and sold against other currencies such as For example, the euro against the dollar (EUR/USD) and the pound sterling against the Japanese yen (GBP/JPY).
Read this term up 1.45% this morning.
The Fed is expected to hike rates by at least 50 basis points in the next 2 meetings.
US mortgage application data fell -6.5%. That’s a 22-year low. Mortgage rates rose to 5.5% from 5.22% last week.
Today US inventory data will be viewed at 10am ET. With the destination announcement in the rear-view mirror, this data becomes interesting. In 4 of the last 6 months, wholesale inventories have increased by more than 2%.
The US Treasury will resume its auctions this week with the 10-year issue (actually 9 years 11 months). Yesterday the Treasury auctioned 3-year notes and had tepid demand from international investors.
A snapshot of the markets shows:
- Spot gold is trading unchanged at $1851.57
- Spot silver is down $0.27, or -1.2%, to $21.97
- WTI Crude Oil is trading down $1.37 to $120.80
- Bitcoin is trading towards the middle of the wall, the range seen over the past day or so. Yesterday the low hit 29,184 and then surged higher towards the high at $31,536. Current prices are in the middle of this range at $30,392
In the pre-market for US stocks, futures markets are implying lower levels after major indices all rose yesterday
- The Dow is trading down -125 points after yesterday’s 264.36 surge
- The S&P index fell 14 points after rising 39.23 points yesterday
- The NASDAQ index is down 34 points after rising 113.86 points yesterday
In Europe: Major indices are lower after solid gains yesterday
- The German DAX fell 87 points or -0.6% to 14468.81
- France’s CAC is down 52.62 points or -0.81% from 6447.74
- The UK FTSE 100 is down -44.89 points or -0.59% to 7554.12
- The Spanish Capricorn is down 5.3 points or -0.6% to 8836.29
- Italy’s FTSE MIB fell -127 points to -0.52% at 24242
In the US bond market, yields are moving higher this morning as the yield curve steepens
US yields are higher
In Europe, benchmark 10-year yields are also moving higher. Below are the current 10-year yields as of the start of the US session
European benchmark 10-year yields are higher
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