Technical Analysis

The GBP is the strongest and the NZD is the weakest as the NA session begins

The strongest to the weakest of the major currencies

The GBP is the strongest of the majors and the NZD is the weakest as the North American session begins for the day/week. The USD is mixed with a downside tilt thanks to larger losses vs the GBP, CHF and EUR. The greenback is marginally higher vs JPY, CAD NZD and AUD. On Friday, the dollar fell sharply despite a stronger than expected jobs report. After a brief move higher, the dollar reversed lower with technical levels breached helping the run higher (see weekend forex report here which outlines the technical levels in play for the start of the trading week). The US stocks also moved higher on Friday and are trading higher today.

Meanwhile, Apple announced that iPhones shipments will be less than expected as a result of Covid policy/shutdowns in China (-3m units). Demand is cooling as well according to reports from Bloomberg. Meta announced that they would be laying off workers for the first time in their history as runaway cost on the metaverse build are weighing on the companies earnings. Their shares are up 3.03% on the news but are still down -72% on the year.

US yields are mixed with the shorter end yields are higher while the longer end is lower.

A snapshot of the markets are currently showing:

  • spot gold is trading down $3.75 or -0.22% at $1676.30
  • spot silver is down $0.22 or -1.09% at $20.62
  • WTI crude oil is trading at $92 down -0.60%
  • bitcoin is trading at $20,760 after trading as high as $21,089 and then as low as $20,589 over the weekend

in the premarket for US stocks, the major indices are trading higher after sharp gains on Friday:

  • Dow industrial average up 131 points after Friday’s 401.97 point rise
  • S&P index up 15.2 points after Friday’s 50.68 point rise
  • NASDAQ index up 39 points after Friday’s 132.31 point rise

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

  • German DAX, +0.79%
  • France’s CAC +0.22%
  • UK’s FTSE -0.3%
  • Spain’s Ibex +0.35%
  • Italy’s FTSE MIB +0.83%

In the US debt market, the yield curve is more negative with the 2 year yield moving higher while the 10 year moves lower: him

US 10 year yields

in the European debt market, yields are mostly lower

European benchmark 10 year yields

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