Technical Analysis

The strongest to the weakest of the major currencies

The CHF is the strongest and the JPY is the weakest as the NA session begins. The USD, which was lower yesterday, has reversed back higher today. BOJs Kuroda did not back down from his expansionary policy saying that raising the 10 year yield would weaken the economy, and that there is no limit to yield curve control. The USD is behind the CHF as one of the strongest currencies today after the slide yesterday. The NZDUSD, EURUSD and the GBPUSD were able to get above the 200 hour MA targets on the topside yesterday. Recall, the BOE kept their tightening string going with a 25 basis point hike. However, all three currencies fell in trading today (higher USD) and moved back below their 200 hour MAs in the process (more neutral heading into the weekend). The AUDUSD – in contrast – found resistance against its 200 hour MA yesterday, and has rotated back to its lower 100 hour MA today (at 0.6958)

US stocks have rebounded higher today but is on pace for a down week. European shares have rebounded as well today.

Bitcoin is little changed after a rough week to the downside.

Chair Powell will speak at 8:45 AM ET two days after hiking by 75 basis points and signaling that another 75-50-25-25 is forthcoming at the remaining Fed meetings this year (although he couldn’t unequivocally say it would be 75 basis points next month)

Be aware, that Monday is a new federal holiday in the US. Juneteenth will be celebrated which commemorates the events of June 19, 1865, when Union General Gordon Granger arrived in Galveston, Tex., to inform enslaved African Americans that the Civil War had ended and they were free. The bond and stock markets in the US will be closed.

A look at the market shows:

  • spot gold is down $9.59 or -0.52% at $1847.56
  • spot silver is down $0.10 or -0.44% at $21.82
  • crude oil is trading near unchanged $116.97
  • The price bitcoin is also near unchanged at $21,000

In the premarket for US stocks, the major indices are rebounding at least parts of after yesterday’s sharp declines:

  • Dow industrial average is up 250 points after yesterdays -741.46 point decline
  • S&P is up 38 points after yesterdays -123.24 point decline
  • NASDAQ index is up 138 points after yesterdays -153.06 point decline

In the European equity markets, the major indices are higher by over 1%:

  • German DAX, up 167.69 points or 1.29%
  • France’s CAC up 74.73 points or will +1.27%
  • UK’s FTSE 100 up 82 points or +1.16%
  • Spain’s Ibex up 136 points or +1.69%
  • Italy’s FTSE MIB up 432 points or 1.98%

In the US debt market, the yields are trading lower:

US yields

US yields are lower across the board

In the European debt market, yields are also lower with Italian 10 year yield now down to 3.687% after trading above 4% earlier this week


European benchmark 10 year yields are lower

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