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

As the North American session begins, the USD is the strongest and the NZD is the weakest. The USD has moved lower after seeing solid declines yesterday. The EURUSD
EUR/USD

The EUR/USD is the currency pair encompassing the European Union’s single currency, the euro (symbol €, code EUR), and the dollar of the United States (symbol $, code USD). The pair’s rate indicates how many euros are needed in order to purchase one dollar. For example, when the EUR/USD is trading at 1.2, it means 1 euro is equivalent to 1.2 dollars.  Why the EUR/USD is the Most Popular Trading PairCompared to all tradable currencies, the euro (EUR) is the world’s second most traded currency, behind only the US dollar. This currency pair is the most traded and liquid currency pair on the market.As the most popular trading pair, the EUR/USD is a staple of every brokerage offering and often has some of the lowest spreads relative to other pairs. Ultimately, the currency follows the two most economic blocs in the world and sees the most volume for this reason.The EUR/USD has a wide range of factors that influence its rates. From the EUR side, economic data in the Eurozone as well as internal factors in the bloc can easily impact rates. Even small member states can effectively weigh on the EUR, as seen in Greece during bailout talks in the 2010s. Alternatively, developments in the United States and the Federal Reserve commonly affect the EUR/USD. Many examples include the bailouts during the Financial crisis, tax cuts during the Trump Administration, and Covid-19 relief measures, among others.

The EUR/USD is the currency pair encompassing the European Union’s single currency, the euro (symbol €, code EUR), and the dollar of the United States (symbol $, code USD). The pair’s rate indicates how many euros are needed in order to purchase one dollar. For example, when the EUR/USD is trading at 1.2, it means 1 euro is equivalent to 1.2 dollars.  Why the EUR/USD is the Most Popular Trading PairCompared to all tradable currencies, the euro (EUR) is the world’s second most traded currency, behind only the US dollar. This currency pair is the most traded and liquid currency pair on the market.As the most popular trading pair, the EUR/USD is a staple of every brokerage offering and often has some of the lowest spreads relative to other pairs. Ultimately, the currency follows the two most economic blocs in the world and sees the most volume for this reason.The EUR/USD has a wide range of factors that influence its rates. From the EUR side, economic data in the Eurozone as well as internal factors in the bloc can easily impact rates. Even small member states can effectively weigh on the EUR, as seen in Greece during bailout talks in the 2010s. Alternatively, developments in the United States and the Federal Reserve commonly affect the EUR/USD. Many examples include the bailouts during the Financial crisis, tax cuts during the Trump Administration, and Covid-19 relief measures, among others.
Read this Term moved above its 200 hour moving yesterday for the 1st time since September 20, but is now moving below that key moving average ahead of the PCE data at 8:30 AM ET.

The GBP was the strongest of the major currencies
Currencies

Currencies are a typically a form of money in wide circulation, being the primary medium of exchange with respect to buying and selling goods and services. These are often issued by a specific government or collection of governments, by way of paper notes and coins. Other forms of currencies include previous metals such as gold and silver, and digital currencies such as Bitcoin. Currencies serve as a backbone of the country’s or countries’ economy, due to the perception of value held by the population that uses that currency.For example, the United States dollar, (symbol $, code USD), or the British pound sterling, (symbol £, code GBP), also known as fiat money, since they are not linked to any specific asset, such as gold or silver. Such metals were traditionally used as the main method of payment, since they held real and actual value. Even after the introduction of paper notes, many countries maintained a gold standard for much of the 20th Century, meaning a unit of money could be exchanged for a fixed amount of gold. How to Trade Currencies?The modern world, with the invention of electronic networks, computers and the internet, has allowed the transfer of money to occur almost instantaneously. It has also spawned a new era in currencies, including digital money, such as Bitcoin and Litecoin. Not backed by any government, but based on a complex set of mathematical software algorithms, the ubiquity of the internet has generated interest and uptake of digital currencies, whilst providing relative anonymity. Digital currencies can now also be traded online, via exchanges and brokers, similar to trading foreign currencies, known as the foreign exchange market. Forex is the world’s largest market, with over $5 trillion turnover per day, where fiat, floating currencies are bought and sold against other currencies, such as the euro vs the dollar (EUR/USD), and the British pound vs the Japanese yen (GBP/JPY).

Currencies are a typically a form of money in wide circulation, being the primary medium of exchange with respect to buying and selling goods and services. These are often issued by a specific government or collection of governments, by way of paper notes and coins. Other forms of currencies include previous metals such as gold and silver, and digital currencies such as Bitcoin. Currencies serve as a backbone of the country’s or countries’ economy, due to the perception of value held by the population that uses that currency.For example, the United States dollar, (symbol $, code USD), or the British pound sterling, (symbol £, code GBP), also known as fiat money, since they are not linked to any specific asset, such as gold or silver. Such metals were traditionally used as the main method of payment, since they held real and actual value. Even after the introduction of paper notes, many countries maintained a gold standard for much of the 20th Century, meaning a unit of money could be exchanged for a fixed amount of gold. How to Trade Currencies?The modern world, with the invention of electronic networks, computers and the internet, has allowed the transfer of money to occur almost instantaneously. It has also spawned a new era in currencies, including digital money, such as Bitcoin and Litecoin. Not backed by any government, but based on a complex set of mathematical software algorithms, the ubiquity of the internet has generated interest and uptake of digital currencies, whilst providing relative anonymity. Digital currencies can now also be traded online, via exchanges and brokers, similar to trading foreign currencies, known as the foreign exchange market. Forex is the world’s largest market, with over $5 trillion turnover per day, where fiat, floating currencies are bought and sold against other currencies, such as the euro vs the dollar (EUR/USD), and the British pound vs the Japanese yen (GBP/JPY).
Read this Term yesterday, but it too is seeing a rotation back to the downside today. The GBPUSD- like the EURUSD – moved above its 200 hour moving average for the 1st time since September 14 and corrected 61.8% of the move down from the September 13 high at 1.1208, but has rotated back to the downside and currently is retesting its 200 hour moving average 1.0159.

Overnight as expected Russia’s announced that they were in annexing 4 regions of Ukraine (under duress).. It is the largest landgrab in decades.

US stocks are marginally higher but well off their premarket high levels. The Dow was up as high as 200 points in premarket trading but is currently up around 50 points. Micron announced earnings after the close and sharply lower their expectations going forward. Nike also announced with decent numbers but impacts from currency were large. US international global companies are experiencing large headwinds from the US dollars sharp advance. In addition to the monthly PCE price data today, there will be a number of Fed speeches including Vice chair Brainard, New York Fed Pres. Williams, Richmond Fed Pres. Barkin and once again Cleveland Fed Pres. Mester (who spoke a number times yesterday).

EU inflation today hit 10% after German reported the same number yesterday.

Crude oil is trading at $80.92 that’s down -him $0.33 on the day in a near its lows for the day after trading as high as $82.54. OPEC meets on October 5 and is expected to decrease production

Looking at the other market, the morning snapshot is showing:

• spot gold is trading up $3.14 or 0.19% at $1664.20 $1.98 or 0.11% at $1662.81
• spot silver is trading up up $0.12 or 0.65% at $18.92
• WTI crude oil is trading at $80.92 which is down $-0.33 on the day
• bitcoin is up $88 or 0.45% at $19,481

in the premarket for US stocks, the major indices are higher but off earlier premarket levels. Yesterday the major indices fell sharply:

• Dow industrial average is up 47 points. Yesterday the index fell by -458.13 points
• S&P index is up 10.78 points points after yesterdays -78.57 point decline
• NASDAQ index is up 33 points points after yesterdays -314.13 point decline

in the European equity markets the snapshot of the market is showing major indices near the lows after giving up earlier gains:

• German DAX +0.04%
• France’s CAC +0.37%
• UK’s FTSE 100 unchanged
• Spain’s Ibex +0.32%
• Italy’s FTSE MIB +0.5%

In the US debt market, the yields are lower:

In the European equity markets, the benchmark 10 year yields are also lower: