October 18 2017
The dollar is getting a boost from rates, and gold and perhaps comments and stocks continue to add wealth (even IBM is talking about a turnaround)
The USD is leading the currency league table today. It is the strongest currency of the major pairs rising the most vs. the NZD and the JPY. Those two currency pairs are the weakest today. BOJ's Sakurai said that it is vital to stick to current monetary policy.
The USD is trading at higher extremes vs the CHF (up 62 points), and CHF (up 41 pips). It is up near the highs vs the CAD but is only up 6 pips after being down earlier in the day. The AUD and the NZD are also near extreme levels (see top chart below). The ranges of the major currency pairs are below their 22 day averages (red line in the lower chart below).
Contributing to the dollar strength include lower gold and higher rates in the US:
Spot gold is down about -$6.30 or -0.49% to $1278.35
US yields are higher with the 2 year at 1.5670% or up 2.0 bp.
5 year is at 1.9898%, up 3.2. bp.
10 year is at 2.330%, up 3.0 bp and the
30 year is at 2.8302%, up 2.8 bp
In crude oil market today, the lead contract is up $0.17 or 0.33% to $52.05. In the private inventory data released at the end of yesterday's trading crude oil inventories had a drawdown of -7.13MM barrels and gasoline had a increase of 1.941 MM barrels. The DOE inventory data will be released at at 10:30 AM ET/1430 GMT. The estimate show -3.25MM drawdown for crude and a 1.05MM increase for gasoline.
US stocks in pre-market trading are higher with IBM leading the way for the Dow. It is up about $8 after earnings and an upbeat report on earnings ahead.
The S&P futures are up 4 points.
The Dow futures are up 90.0 points.
The Nasdaq futures are up 5.75 points
European stocks are mostly higher: German Dax up 0.5%. France CAC up 0.5%. UK FTSE up 0.3%. Spain's Ibex down -0.1%. Italy's FTSE MIB up 0.1%
European 10 year yields are higher. Germany 0.387%, up 2.2 bp. France 0.797%, up 2.0 bp. UK 1.312%, up 3.6 bp. Spain 1.592%, up 4.5 bp. Italy 2.02%, up 2.2 bp. Portugal 2.363%, up 4.2 bp
US housing starts and building permits will be released at 8:30 AM ET/1230 GMT. Estimates are for 1175K and 1245K respectively vs (1180K and 1300K). The US Beige book will be released at 2 PM ET/1800 GMT.