The USD is lower after China increased tariffs on US goods to 125% overnight.
The EURUSD spiked above the swing high from 2023 at 1.1275 and the 61.8% of the move down from the January 2021 high which was near that level at 1.1271. The pair is now approaching the swing a swing area on the daily chart from November 2021 to February 2022 between 1.1482 to 1.15158. The high has reached 1.1473. The current price has come off and trades at 1.1345 which is still up 1.34% on the day (USD is lower).
The USDJPY moved down toward the prior swing lows near 141.64 to 141.942 from August to the end of September 2024. The low reached 142.04, but has bounced ahead of that area.
The GBPUSD is higher but still below the highs from last week which saw the pair move to a high of 1.3206. The pair did break above a swing area between 1.3044 to 1.3058.
The video above outlines the key technical levels for the 3 major currency pairs – the EURUSD, USDJPY and the GBPUSD.
The US PPI data will be released today following the CPI data which was weaker than expectations yesterday. The PPI is expected to rise of 0.2% and 0.3% for the headline and the core measures. The YoY area expected at 3.3% and 3.6% respectively.
Later today, the Univ. of Michigan sentiment preliminary is expected at 54.5 vs 57.9 last month. The current conditions is expected at 61.5 vs 63.5 last month. THe expectations is 50.8 vs 54.2 last month.
It seems like earnings season was just finished (it is honestly spread way too long), but it is here again (amonst all the uncertainty from tariffs). The banks traditionally kickstart the season and JPM and Bank of NY beat, Wells Fargo was mixed
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JPMorgan Chase (JPM) Q1 2025: EPS $5.07 (BEAT; exp. $4.65), Revenue $46.01B (BEAT; exp. $43.85B)
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Wells Fargo (WFC) Q1 2025: EPS $1.39 (BEAT; exp. $1.24), Revenue $20.15B (MISS; exp. $20.85B),
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Bank of New York Mellon (BK) Q1 2025: EPS $1.58 (BEAT; exp. $1.52), Revenue $4.79B (BEAT; exp. $4.77B),
Looking at other markets to start the US trading day:
- Crude oil is up modestly and $60.14
- Gold continues its rise to record levels. It is up $43 or 1.36% at $3218.58. The new all-time high price reached $3237.72.
- Silver is up $0.23 or 0.74% at $31.44.
- Bitcoin is trading up $2591 at $82,094
Looking at the premarket for US stocks, the major indices are now higher in volatile trading:
- Dow was 72 points
- S&P index +16.2 points
- NASDAQ index +57.18 points
Looking at the US yield curve, yields are now higher also in volatile trading:
- 2-year yield 3.859%, +1.3 basis points
- 5-year yield 4.076%, +4.0 basis points
- 10 year yield 4.446%, +5.4 basis points
- 30 year yield 4.85%, +3.8 Point basis points
