The USD is mostly higher to start the North American session as it reacts to the US rates/higher oil. The EURUSD is down -0.17%, the USDJPY is up 0.13% (higher USD), the GBPUSD is unchanged. The biggest movers are the AUDUSD and the NZDUSD on risk off flows (down -0.28% and -0.20%). In the video above, I talk to the technicals that are driving the markets as traders in North American prepare
Although there were reports that there is a narrowing the gap between Iran and the US, oil prices are higher as the Iran Supreme Leader ordered that the enriched uranium is to stay in Iran. That is at odds with the Trump administrations view of taking away all roads to a nuclear bomb. As a result, tThe price of oil is trading back above $100 at $100.53 after settling yesterday at $98.26, down $5.89 on the session. The price is back up testing the 200 and 100 hour MAs at $100.92 and $101.61 respectively.
US yields are also back higher as it reacts to the news with the 2 year back up 5.8 basis points at 4.097%. The 10 year is up 3.7 basis points at 4.607%. Traders would love to see a move below 4% and 4.5% at some point, but the optic today, is not leaning that way, and yields remain vulnerable to moving higher.
US stocks are lower following the yields and the the USD. The Dow futures are implying a decline of -87 points. The S&P is down -21.7 points while the Nasdaq is down -135 points. Nvidia reported better than expected earnings and upped guidance going forward, increased dividend to $0.25 from $0.01. Shares are down about $0.50 which is a result compared to more recent earnings releases.
On the economic calendar a slew of data will be released at 8:30 with:
- Initial jobless claims estimate at 210K vs 211K last week. Continuing claims are expected at 1.785M vs 1.1782M last week
- Philly Fed Business index for May at 18.0 vs 26.7 last month
- US Buiding permits at 1.385M vs 1.363M last month
The USD is mostly higher(modestly) to start the No American session.What next technically?
