The dollar breaks higher.

The USD is king today.

The greenback is up against all the major currencies with the NZDUSD trending the most (change of 0.67% for the day with the GBPUSD not far behind at 0.59%). As Mike points out, there is something about the 1.2600 level (options?) that has kept that pairs move in check. Canada retail sales (+0.2% MoM and +0.1% ex auto) will make those option sellers (it behooves the shorts to have the option close at the strike price). The US Richmond Fed manufacturing index will be released at 10 AM.

The major pairs are trading near extemes as the prices have trended. The GBPUSD leads the way with a near 100 pip trading range which is above its 22 day average trading range (98 pips total range). The EURUSD range is showing some good activity as well (79 pip range). Some of the JPY crosses which were higher earlier in the day, have reversed and trade negative and more near the lows (EURJPY, GBPJPY and AUDJPY).

IN other markets today:

  • Spot gold is trading down -$5.70 to 1286.17
  • WTI crude oil is unchanged at $47.38
  • US stocks in pre-market trading are up. S&P futures are up 5.5 points. Nasdaq futures are up 27 points. Dow futures are up 47 points
  • US yields are higher. 2 year 1.3175%, up 1.6 bp. 5 year 1.777%, up 2.6 bp. 10 year 2.206%, up 2.4 bp. 30 year 2.7816%, up 1.8 bp
  • European stocks are mostly higher (Italy is down). The lower EUR is helping a bit. The Dax is up about 0.8%. Cac is up 0.5%. UK FTSE up 0.65%
  • European 10 year yields are mostly higher. Germany unchanged. France up 1.4 bp. UK up 1.9 bp. Italy up 7.3 bp. Spain up 3.6 bp.