Technical Analysis

The USD is the strongest and the AUD is the weakest as the North American session begins

The strongest to the weakest of the major currencies

The USD is leading the table as the strongest of the major currencies, while the AUD is the weakest. The AUD is the strongest despite stronger jobs data out of Australia last night (+32.2K jobs and 3.4% unemployment rate). The unemployment rate was the lowest in over 50 years. However, dollar buying dominated in the European session today and sent the AUDUSD sharply lower (-1.45% to start the session).

In the US today, the weekly jobless claims, housing starts, and Philly Fed business survey will be released. Yesterday, retail sales came in stronger than expected and that will keep the Fed on a tightening bias going into 2023 and perhaps extending further into the year if demand does not slow. That does not prevent the Fed to lower the trajectory to 50 basis points at the next meeting.

Budget news from the UK failed to impress. The GBP is lower.

Feds Bowman, Jefferson and Mester are all expected to weigh in with their opinions today.

Stocks in the US are set to open lower, piggybacking on the declines from yesterday. Crude oil is lower. Russian and Ukrained agreed to continue their deal that ensures exports of foodstuffs from Ukraine ports. The price of wheat fell to the lowest level in two months.

European benchmark 10 year yields are higher

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