Technical Analysis

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

This strongest to weakest of the major currencies

As the market prepares for the Chair Powell’s speech later today (1:30 PM ET), the AUD is the strongest, the JPY is the weakest. The greenback is mostly lower. Will Powell have a dovish pivot or will he continue his more hawkish pitch to the markets? The data has been on the softer side, and the Fed is data dependent, but with employment due for release on Friday and another CPI due the day before the Fed decision on December 13. In addition to Powell, Feds Cook will speak and the Beige Book will be released at 2 PM.

The ADP gets the jobs data kick started today, when it is released at 8:15 AM ET. The expectations are for 200K today. Later the JOLTs job openings will be released at 10 AM ET with expectations at 10.300M vs 10.717M. A few months ago the markets were shocked with a near 1M decline.

The Euro pre-CPI inflation fell from 10.6% to 10.0% which was less than 10.4% estimate. Germany reported lower prices yesterday leading the way.

The 2nd cut of the GDP for the 3Q will be released with expectations of 2.8% vs 2.6% in the initial reading.

A snapshot of the other markets are showing:

  • Spot gold is trading up $11.32 or 0.65% at $1761.
  • Spot silver is up $0.30 or 1.45% at $21.53
  • WTI crude oil is trading at $80. That’s up $1.80 from the settle price yesterday
  • The price of bitcoin is trading at $16,780. The low today reached $16,430. The high extended above the $17,000 level at $17,072

in the premarket for US stocks, the major indices are trading marginally higher. Yesterday the Dow industrial average rose marginally while the S&P and NASDAQ index moved lower:

  • Dow up 15 points after yesterday’s 3.07 point rise
  • S&P up six points after yesterday’s -6.33 point decline
  • NASDAQ index up 36.5 points after yesterday’s -65.72 point decline

in the European equity markets, the major indices are trading higher:

  • German Dax +0.4%
  • Frances CAC +0.8%
  • UK’s FTSE 100 +0.84%
  • Spain’s Ibex +0.23%
  • Italy’s FTSE MIB +0.3%

in the US debt market, yields are mixed:

Yields are mixed

In the European debt market, the benchmark 10 year yields are higher

Europe benchmark 10 year yields

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