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The GBP is the strongest and the JPY is the weakest as the North American session begins

The GBP is the strongest and the JPY is the weakest as the North American session begins. The USD is tilted to the downside after falling yesterday.


The strongest to weakest currencies as NA traders enter

The GBP has been supported by expectations that there will be additional restrictions, at least in the short term. UK’s also reduce the time for self isolation from 10 to 7 days in an effort to dissuade absenteeism’s. I hope it also is in response to less chance for transmission. In any case, the GBP is benefiting today on those news items despite weaker GDP growth (1.1% versus 1.3% estimate).

Today, the US will release the next cut for their third-quarter GDP (estimate 2.1% versus 2.1% on the last release. Released at 8:30 AM ET). The Chicago Fed national activity index November will also be released along with existing home sales (6.52 M versus 6.30 M last month (released at 10 AM ET), consumer confidence (10 AM ET) and the weekly crude oil inventory data. The private crude oil data released late yesterday showed a larger than expected decrease in inventories of -3.7 MB. Gasoline inventories did rise by 3.7 MB while distillates fell by -0.8 MB (day to be released at 10:30 AM ET) data.

US stocks are near unchanged levels after yesterday’s sharp move higher. Crude oil is trading near unchanged as well. US rates are showing lower rates further out the yield curve. Yesterday the treasury auctioned off $20 billion of 20 year notes with strong demand.

A look at other markets currently shows:

  • Spot gold is up $4.25 or 0.24% at $1792.68.
  • Spot silver is up $0.13 or 0.59% at $22.63
  • WTI crude oil futures are trading near unchanged at $71.15.
  • Bitcoin is trading at $48,864. The high price reached $49,600 still below the $50,000 level.

A look at the premarket estimates (from the futures) for US stocks shows mixed but modest changes:

  • Dow industrial average up 46 points
  • S&P index up 1.27 points
  • NASDAQ index is down -19 points

In the European equity markets, the major indices are little changed:

  • German DAX +0.1%
  • France’s CAC, unchanged
  • UK’s FTSE 100 unchanged
  • Spain’s Ibex +0.3%
  • Italy’s FTSE MIB -0.1%

In the US debt market, the yields are mixed with the longer yields down the most. The two year yield is up modestly.

US yields

US yields are mostly lower

In the European debt market, the benchmark 10 year yields are trading higher UK yield up 3.5 basis points leading the way. The France 10 year yield remains above the parity level at 0.08%:

European yields

European yields are higher

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