Technical Analysis

The AUD is the strongest and the CHF is the weakest as the NA session begins


The strongest to weakest of the major currencies

The AUD is the strongest and the CHF is the weakest as the NA session begins. The USD is weaker. China quelled some anxiety about their 0-Covid policy that led to violent protests over the weekend. They announced they will speed up vaccinations for elderly and shifted the narrative toward the virus (tamed the risk). As a result, China stocks moved higher. That in turn, helped to support the AUD and NZD and propel them to the top of currency table (strongest of the majors). Oil prices moved higher as well after falling yesterday. The US stocks are marginally higher after yesterday’s declines snapped the Dow 3 day win streak. The Nasdaq and S&P fell for the 2nd day in a row. Yields are lower in the US at the start of the session.

In Europe preliminary CPI data out of the Germany moved lower in November (down -0.5% vs -0.2% est. YoY falls to 10% vs 10.4% est). The EURUSD is higher but has chopped up and down in the Europe so far with price action mostly between the 100 hour MA above at 1.0392 and the 200 hour MA at 1.03505. Yesterday the EURUSD moved sharply to the upside in the early European session before rotating back lower and eventually taking out the Asian session lows in a wild up and down trading day. The 200 day MA has now seen the price trade above and below it for 5 consecutive days and the market cannot decide if it is higher or lower for the EURUSD after the rebound off the September low took the pair’s price toward to the 50% retracement of the 2022 year. The midpoint comes in at 1.0515. The high yesterday reached to 1.0496 within 20 pips of that level. The ECB is also torn between 50 and 75 basis points at their next meeting which may also be contributing to the ups and downs.

A snapshot of the markets are showing:

  • Spot gold is trading up $13 or 0.74% at $1754.29
  • spot silver is trading up $0.36 or 1.73% at $21.28
  • WTI crude oil is trading $78.94 that’s up 2.18% day
  • Bitcoin is trading near the $16,500 level at $16,480 that’s up 1.5% on the day or $243

in the premarket for US stocks, the major indices are marginally higher:

  • Dow industrial average up 26 points after yesterday’s -497.57 point tumble
  • S&P index is up 10.5 points after yesterday’s -62.16 point slide
  • NASDAQ index is up 46 points after yesterday’s -176.86 fall

in the European equity markets, the major indices are mixed:

  • German Dax is up 0.24%
  • Frances CAC is up 0.3%
  • UK’s FTSE 100 is up 0.77%
  • Spain’s Ibex is down -0.17%
  • Italy’s FTSE MIB is unchanged

In the US debt market, yields are lower in early US trading:

US yields are lower early New York trading

In the European debt market, the yields have tumbled lower on the lower CPI

European benchmark 10 year yields are lower

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