In the video above, I take a technical look at the 3 major currency pairs - the EURUSD, USDJPY and GBPUSD - to kickstart the North American session.
Yesterday, Canada and Mexico were granted a 30-day reprieve from tariffs after agreeing to deploy additional troops at the border and implement other measures aimed at reducing the flow of fentanyl and illegal immigration.
Federal Reserve Bank of Chicago President Austan Goolsbee (dove and voter) expressed concerns about inflation in a recent radio interview. He highlighted that uncertainties in the economy may require the Fed to be more cautious and prudent when cutting rates. Goolsbee acknowledged the risks of inflation potentially rising again, especially if fiscal policies impact prices or employment. While noting strong growth and consumer activity, he also mentioned concerns about inflation and the challenge of distinguishing between rising prices being a sign of economic overheating or the temporary effect of tariffs. Due to these uncertainties, he suggested the Fed might need to slow the pace of rate cuts.
Some of the key earnings from this morning showed:
PayPal Holdings Inc (PYPL) Q4 2024 (USD): Adj. EPS 1.19 BEAT, expected 1.12, Revenue 8.37B BEAT, expected 8.26B. Despite the beat, shares are down -6.3% in premarket. Regeneron Pharmaceuticals Inc (REGN) Q4 2024 (USD): EPS 12.07 BEAT, expected 11.29, Revenue 3.79B BEAT, expected 3.75B. Shares are up 2.87% in premarket.Merck & Co (MRK) Q4 2024 (USD): EPS 1.72 BEAT, expected 1.62, Revenue 15.62B BEAT, expected 15.49B. Shares are down -7.84% in premarket despite the BEAT on lower guidance, and trading at the lowest levels since October 2022PepsiCo Inc (PEP) Q4 2024 (USD): EPS 1.96 BEAT, expected 1.94, Revenue 27.87B BEAT, expected 27.88B. Shares are trading down -2.18% in premarketPalantir Technologies Inc (PLTR) Q4 2024 (USD): Adj. EPS 0.14, expected 0.11, Revenue 827.5M, expected 780M. Shares are up 22% to $102.12 in pre-market trading.
Dow Industrial Average fell -122 points of 00.28%S&P fell -45 points or -0.76%Nasdaq fell -236 points or -1.20%.The Rusell 2000 of small cap stocks also fell sharply with a fall of -1.26% on the day.
Today, the indices are trading mixed:
Dow industrial average -78 pointsS&P index up 2.68 pointsNasdaq index up 28 points2 year yield 4.265%, unchanged5 year yield 4.387%, +3.2 basis points10 year yield 4.589%, +4.7 basis points 30 year yield 4.826%, +5.6 basis points
Looking at other markets to start the trading day:
Crude oil is trading down $-1.52 or -2.08% and $71.65 Gold is trading up nine dollars or 0.32% in $2823.21. Yesterday the price traded to a new intraday high of $2830.57 on flight to safety flows. The high price today reached $2824.65 Bitcoin is trading back below the 100,000 level at $99,594, down $-1863 or -1.83%On the economic calendar today
US factory orders for December are expected to fall -0.7% versus -0.4% last month. Part of that report is durable goods orders which in the preliminary release showed a decline -2.2%. Last month the durable goods fell -2.0%. Nondefense capital ex air came in a +0.5%. That feeds into GDP.JOLTs job openings will start the flow of employment data culminating with the US jobs report on Friday were expectations are for a gain of around 170K. The JOLTS is expected to come in at 8.000M vs 8.098M last month. This article was written by Greg Michalowski at www.forexlive.com. Read More Details
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