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

The CAD is the strongest (continuing the move higher seen yesterday) and the NZD is the weakest as North American traders enter for the day.

The strongest to weakest currencies

The USD is mixed/little changed as traders await the US CPI data to be released at 8:30 AM. That data point is expected to rise to 7.0% YoY vs 6.8% last month (highest since 1982). The core CPI inflation is expected to rise by 5.4% (vs 4.9% last month – highest since 1991).

US stock index futures are pointing to a higher open after yesterday’s rise that saw the Nasdaq index lead the way with a 1.41% rise.

US rates are little changed after yields fell yesterday (10 and 30 year yields moved down around -4 basis points yesterday). The US treasury will auction $36 billion of 10 year notes (well reopened 9 and 10 month notes) at 1 PM today. Tomorrow they will complete the refunding this week by auctioning $22B or 30 year bonds (29 year and 10 month actually). The heat came off a bit yesterday after the Fed Chair at his renomination testimony yesterday seemed to imply the typical methodical progression for the policy change (it will take 2-4 meetings to gear up and no details of QT or just run off of the balance sheet).

Crude oil is about 0.26% higher after yesterday’s over 3% rise. The weekly inventory data will be released at 10:30 AM ET. The private data yesterday showed:

Crude oil

The private inventory data

A snapshot of the markets as North American traders enter for the day shows:

  • Spot gold down $2.30 -0.13% at $1818.90
  • Spot silver is unchanged at $22.77
  • WTI crude oil futures are up $0.22 or 0.27% at $81.44
  • The price of bitcoin is trading higher $43,144. It was trading around $42,718 near 5 PM ET yesterday

In the US equity market, the futures are implying a modestly higher opening. The NASDAQ is up two consecutive days. The S&P index snapped a six day losing streak. The Dow industrial average snapped a four day losing streak.

  • Dow up 40 points after yesterday’s 183.15 point rise
  • S&P index up 5.2 points FTSE is 42.8 point rise
  • NASDAQ up 28 points after yesterday’s 210.62 point rise

In the European equity markets, the major indices are higher/near unchanged:

  • German DAX +0.3%
  • France’s CAC 0.5%
  • UK’s FTSE 100 +0.6%
  • Spain’s Ibex unchanged
  • Italy’s FTSE MIB unchanged

In the US debt market, yields are steady.

US yields

US yields are steady in early US trading

IN the European debt, market, the benchmark 10 year yields are down by around -1 to -3 basis points. The US 10 year yield at 1.748% remains higher than the major European 10 year yields with Italian yields -39 basis points being the closest (their yield is at 1.358%).

Europe 10 year yields

European benchmark 10 year yields

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