The JPY is the strongest and the NZD is the weakest as NA trading begins

USD is mixed

As the North American session gets underway, the JPY is the strongest of the majors while the GBP is the weakest (followed closely by the NZD).  The USD is mixed with gains vs the GBP, CAD and NZD and declines vs the EUR, JPY, CHF and AUD.  The Bank of Canada is to announce a continuation of its bond purchases as it continues to pull back the stimulus from the pandemic. The BOC is expected to start tightening in 2022 with the market pricing in 4 hikes.  US stocks are mixed with modest changes in pre-market trading after a slew of earning after the close yesterday and this morning (Nasdaq is down, Dow is up). The S&P and Dow closed at record levels yesterday. It was the 57th record close for the S&P in 2021 and thee 38th record for the Dow.  Durable goods, trade balance, wholesale inventories (all at 830 AM ET) and weekly crude oil inventory data will be released today along with the BOC decision (at 10 AM ET). 

In other markets as the NA session gets underway shows:

  • Spot gold is up $1.98 or 0.76% at $1794.33.
  • Spot silver is down six cents or -0.27% at $24.08.
  • WTI crude oil futures are down $0.78 at $83.78
  • The price of bitcoin is back below the $60,000 level at $58,740.54

in the premarket for US stocks, the futures are implying:

  • Dow industrial average up 28.9 points after yesterday’s 15.73 point gain (record close)
  • S&P index -2 points after yesterday’s 8.31 point gain (record close)
  • NASDAQ index down nine points after yesterday’s 9.01 point gain

In the European equity markets, the major indices are in the red after yesterday’s gains saw the Euro Stoxx 600 index  close at all time record high:

  • German Dax, -0.4%
  • France’s CAC, -0.3%
  • UK’s FTSE 100, -0.1%
  • Spain’s Ibex, -0.2%
  • Italy’s FTSE MIB, -0.5%

In the US debt market, the yields are mixed with the shorter and near flat while the longer and continues to move to the downside. The 30 year yield is just above the 2% level at 2.01%. The 2 – 10 year spread as come in by about 3.4 basis points to 110.0 versus 113.4 yesterday.

US yields are mixed

In the European debt market, the benchmark 10 year yields are all lower as well with the UK 10 year down -7.2 basis points leading the way.

European yields are lower

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Technical Analysis

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