The US CPI data will be released at 8:30 AM ET. the expectations are that the YoY will move up to 7.3% from 7.0% (another new 4 decade high). The MoM is expected to rise by 0.5% vs December. The Core YoY is expected at 5.9% vs 5.5% last month.
Ahead of the release, the
AUDUSD is the strongest and the JPY is the weakest. The USD is mixed to lower. The EURUSD remains within the range from yesterday. The GBPUSD has retraced much of the move down from yesterday’s North American session.The USDJPY spiked higher in the London session (anticipation of the data), and trades at new highs for the month.
US stocks are mixed in premarket/pre-data trading with the Dow higher in the S&P and NASDAQ lower.
US yields are little changed ahead of the 30 year bond auction at 1 PM ET. The three and 10 year auctions were met with strong demand from international investors leading the way.
The price of crude oil is trading higher after the correction earlier this week has run out of steam. The inventory data yesterday showed a surprise drawdown of over 4 million barrels, reminding traders of the demand.
In addition to the CPI data, the weekly
jobless claims data will be released at 8:30 AM. Expectations are for 230 K versus 238K last week.
IN other markets as North American traders enter for the day shows:
- Spot gold is trading down $0.81 or-0.04% $1831.73
- Spot silver is trading up five cents or +0.22% the $23.35
- WTI crude oil is trading plus $0.60 at $90.26
- Natural gas futures are trading down three cents at $3.97
- The price of bitcoin is trading at $44,688.61.the high for the day has so far reached $45,200. The low for the day is at 43,006 and $25
In the premarket for US stocks, the major indices are trading mixed with the Dow higher in the S&P and NASDAQ lower. The Dow is on a three day win streak while the S&P and NASDAQ are up for two consecutive days.
- Dow industrial average up 61 points after yesterday’s 305.28 point rise
- S&P index is trading down-3.5 points after yesterday’s 65.64 point rise
- NASDAQ index is trading down -26 points after yesterday’s 295.92 point rise
In the European equity markets, the major indices are unchanged to higher the France’s CAC is unchanged, the Spain’s Ibex is up 0.6%
- German DAX, +0.5%
- France’s CAC, unchanged
- UK’s FTSE 100 +0.3%
- Spain’s Ibex, +0.6%
- Italy’s FTSE MIB +0.5%
In the US debt market, the yields are little changed ahead of the 30 year bond auction at 1 PM. Both the 3 and 10 year auctions on Tuesday and Wednesday were better than expectations.
In the European debt market, the benchmark 10 year yields are mixed with little changes. Italian yields which got within 5 or so pips of parity vs the equivalent US 10 year yield, are at 14.2 basis points currently