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

As the North American session begins, the NZD is the strongest and the USD is the weakest of the major currencies. Today US yields are lower after rising yesterday and closing at the highest level since November 24. The economic calendar is void of any economic data today. The US treasury will auction off 3-year notes. Tomorrow, the treasury will auction 10-year notes and on Thursday 30 year bonds.

There was a report that the Bank of Japan would raise their projections for inflation after recent wage negotiations..

Looking ahead to tomorrow, the RBNZ are expected to keep rates unchanged when they announce their decision tomorrow in NZ (at 10 PM ET).. The US CPI will be released tomorrow at 8:30 AM ET with 0.3% expected for headline and the core measures and the YoY rising to 3.4% from 3.2% last month. The Bank of Canada will announce its rate decision at 9:45 AM ET (no change expected).

Later this week on Thursday, the ECB will announce their rate decision with focus on if the ECB will give clues for a June cut in rates. The US PPI will also be released on Thursday which has taken on added importance due to the flow through of components to the the PCE inflation report which is the “favored inflation measure” for the Fed.

Crude oil is little changed as the geopolitical roller-coaster continues in Israel regarding will they or won’t they come to some ceasefire agreement, or will Isreal invade Rafah in the Gaza strip. The latest tilt is no agreement with Israel still pointing toward a Rafah assault.

US stocks are edging higher in pre-market trading. Bitcoin is lower after the run higher yesterday.

A snapshot of the other markets as the North American session begins currently shows:

• Crude oil is trading down four cents at $86.32. At this time yesterday, the price was at $86.30
• Gold is trading up $15.27 or 0.66% at $2354.30. At this time yesterday, the price was $2337.23
• Silver is trading up $0.24 or 0.88% at $28.06. At this time yesterday, the price was at $27.61
• Bitcoin currently trades at $70,896. At this time yesterday, the price was trading at $72,348

In the premarket, the major indices are tilting to the upside after near unchanged resulted from yesterday’s trade

• Dow Industrial Average futures are implying a gain of 51 points. Yesterday, the index fell -11.24 points or -0.03% at 38892.81
• S&P futures are implying a gain of. 10.86 points. Yesterday, the index -1.97.points or -0.04% at 502.38
• Nasdaq futures are implying a gain of 48 points. Yesterday, the index rose 5.43 points or 0.03% at 16253.96

The European indices are mostly lower:

• German DAX, -0.54%
• France CAC , -0.29%
• UK FTSE 100, +0.18%
• Spain’s Ibex, -0.19%
• Italy’s FTSE MIB, -0.50% (delayed 10 minutes)

Shares in the Asian Pacific markets were lower:

• Japan’s Nikkei 225, +1.08%
• China’s Shanghai Composite Index, +0.05%
• Hong Kong’s Hang Seng index, +0.57%
• Australia S&P/ASX index, was 0.45%

Looking at the US debt market, yields are near unchanged:

• 2-year yield 4.762%, -2.8 basis pointss. At this time yesterday, the yield was at 4.790%
• 5-year yield 4.393%, -4.1 basis points. At this time yesterday, the yield was at 4.450%
• 10-year yield 4.381%, -4.2 basis points. At this time yesterday, the yield was at 4.458%
• 30-year yield 4.517%, -3.6 basis points. At this time yesterday, the yield was at 4.597%

Looking at the treasury yield curve spreads:

• The 2-10 year spread is at -38.0 basis points. At this time Friday, the spread was at -32.9 basis points
• The 2-30 year spread is at – 24.3 basis points. At this time Friday, the spread was at -19.2 basis points

European benchmark yields are lower:

This article was written by Greg Michalowski at www.forexlive.com.