The USD is lower to start US trading day. What is moving the markets in trading today?

TGIF!

Yes it is Friday. I know I have to source my calendar as the markets continue the reheat after the Holiday season.

The USD is trading modestly lower today after the rise seen yesterday. The US initial claims came in better than expected at 211K vs 222K estimate. The S&P Global PMI data was also better at 49.4 vs 48.3 estimate.

The USD vs the major US currencies is showing:

• EUR -0.30%
• JPY -0.23%
• GBP -0.19%
• CHF -0.35%
• CAD unchanged
• AUD -0.24%
• NZD -0.18%

US stocks are trying to rebound after 5 days of broader indices decline. Today, in premarket trading, the futures are implying

• Dow up 114 points after falling -151.95 or -0.36% yesterday
• S&P up 14.7 point after declining by -13.08 or -0.22% yesterday
• Nasdaq up -30.00 pointe after falling -30.0 points or -0.16% yesterday

In the US debt market yields are lower:

• 2-year 4.233%, -1.5 basis points
• 5-year 4.357%, -2.3 basis points
• 10 year 4.545%, -3.0 basis points
• 30 year 4.761%, -3.6 basis points

The economic calendar in Europe coming into the US session was light with:

• Spanish Unemployment Change (EUR): Actual: -25.3K vs. Forecast: -46.5K (MISSED expectations). That compared to -16.0k last month
• Swiss Manufacturing PMI (CHF): Actual: 48.4 vs. Forecast: 48.4 but slightly lower than the prior month at 48.5 (MET expectations).
• German Unemployment Change (EUR): Actual: 10K vs. Forecast: 15K (LOWER than expectations).
• UK Mortgage Approvals (GBP): Actual: 66K vs. Forecast: 69K (MISSED expectations) and 68K last month.
• Net Lending to Individuals m/m (GBP): Actual: 3.4B vs. Forecast: 4.4B (MISSED expectations).

Looking at the US economic calendar, the sole economic release will be the ISM manufacturing PMI index for December which will be released at 10 AM ET. The expectation is for the index to come in unchanged at 48.4 in December

Recall, a reading below 50 signals contraction in the manufacturing industry. The manufacturing sector in the US accounts for a little over 10% of the US economy. The index has been below 50 for 8 consecutive months with the low watermark at 46.5. The forward-looking new orders sub-index rose to 50.4 in November, entering expansionary territory for the first time since March. The Prices paid by manufacturers declined in November to 50.3 in November, but is expected to rise to 51.7 according to economist surveyed.

The kickstart video to start the trade where I take a technical look at the EURUSD, USDJPY and GBPUSD is below:

(VIDEO IS COMING).

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