Dollar rebounds after a couple days of declines
The dollar was the weakest currency of the day for the 2nd day in a row yesterday after Fed’s Williams more dovish comments.
Early in the session he retracted at least some of the bias when his office said his speech ‘was not about potential policy actions at the upcoming FOMC meeting’. What! Geez…
Today is the last day the Fed members can speak as they enter the black-out period before the next Fed meeting on July 30-31. Maybe they would be better off being blacked out forever (not serious but yiikes).
The general market reaction as seen the dollar rebound higher, rates moved higher, gold moved lower and there are some angry traders that got suckered in with the «fake news».
The changes and ranges are showing the EURUSD being the most active. IT is trading near the low (down -40 pips) with a 51 pip range for the day (the high was in the early hour of the day). The price for that pair is back below the 100 day MA, and the 200 and 100 hour MAs now (at 1.1247, 1.12414 and 1.1237 respectively — trade at 1.1228 now). The USDJPY is higher and near the high for the day (it got smashed). The AUDUSD is lower but remains above the old July highs at 0.7043 and 0.70469 (low reached 0.7048 so far).
In other markets:
- spot gold is trading down $8.70 or -0.60% at $1437.40
- WTI crude oil futures are trading up $.68 or 1.23% at $55.98. It is rebounding after the sharp fall yesterday
- Bitcoin on Coinbase is trading near unchanged at $10,600.
In the pre-market for US stocks, the major indices are up modestly after Microsoft’s beat:
- Dow, up 85 points
- S&P index up 6 points
- NASDAQ index up 30 points
in European markets:
- German DAX, +0.15%
- France’s CAC, +0.17%
- UK’s FTSE, +0.23%
- Spain’s Ibex, -0.2%
- Italy’s FTSE MIB, -1.4%
In the US debt market, yields are higher:
The European benchmark yields mostly lower with Italy the exception (up 5.8 bp).