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

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

The NZD is the strongest and the USD is the weakest as the NA session begins. The US CPI data will be released at 8:30 AM ET. Adam posted a preview HERE. The headline is expected to rise by 0.2% and the YoY is expected to increase to 3.2% or as Adam points out 3.3%. The rise is due to a 0.1% dropping off from 12 months ago. What is ahead is the next two month MoM gains from a year ago are at 0.5% and 0.4%. Those figures will be replaced by new numbers which if 0.1% to 0.2% will see a decline in the index by 0.5% to 0.7%. It still is not 2.0% but the trend is more toward that target. Also shelter costs are STILL expected to move lower. That is a wild card to monthly data. Yesterday Fed's Williams spoke. Some of his comments suggested a slowing of the hype to lower rates:Economic Balance and Inflation:The Fed observes meaningful progress in restoring economic balance.Acknowledges that there is still significant work to do to bring inflation back to the 2% target.Notes an improvement in the inflation situation.Forecasts inflation ebbing to 2.25% in 2024 and 2% in 2025.Employment and Economic Growth:Positive outlook on the job front, with things looking very good.For 2024, expects GDP around 1.25% and unemployment at 4%.Risk Assessment and Future Outlook:Points out that risks to the economy are two sided.Emphasizes that rate decisions will be driven by the totality of data.Acknowledges the uncertainty in the outlook, with rate decisions to be made meeting by meeting.Federal Reserve's Monetary Policy Stance:Stresses the need for a restrictive policy stance for some time.Suggests the Fed can cut rates when confident that inflation is moving back to 2%.Reiterates that the Fed’s work to bring inflation back to 2% is not yet complete.Bitcoin is trading highe after SEC approval of the first exchange traded ETF that tracks the spot price. Eleven Bitcoin ETFs will begin trading for the first time when the stock market opens at 9:30 AM ET. Stocks are higher in premarket trading with the Nasdaq leading the way for the 4th consecutive day. this week. The Dow is trading above and below unchanged in pre market trading. Yields are lower. Oil is higher as tensions in the Red Sea continue to be a problem for shippers. In contrast, the weekly US inventory data showed surprise builds in Oil, gas and distillates as demand moves lower. A snapshot of the markets as the North American session begins currently shows:Crude oil is trading up $1.46 or 2.05% at $72.83. At this time yesterday, the price was at $72.61Gold is trading up $8.78 or 0.43% at $2032.89. At this time yesterday, it was trading at $2031.14Silver is trading up $0.17 or 0.73% at $23.04. At this time yesterday, it was trading at $22.93Bitcoin traded at $47,448. At this time yesterday, the price was trading at $44,399. In the premarket for US stocks, the major indices are trading next after trading mixed on TuesdayDow Industrial Average futures are implying a gain of 14.27 points. Yesterday, the index rose 170.57 points or 0.45%S&P futures are implying a rise of 6.8 points. Yesterday, the index rose 26.95 points or 0.57%Nasdaq futures are implying a gain of 71 points. Yesterday, the index rose 111.94 points or 0.75%. In the European equity markets, the major indices are all trading lower:German DAX, 0.31%. Yesterday, the index rose 0.01%France CAC 0.28%. Yesterday, the index fell 0.01%UK FTSE 100 0.07%. Yesterday, the index fell 0.42%Spain's Ibex +0.44%. Yesterday, the index rose 0.07%Italy's FTSE MIB 0.20% (delayed by 10 minutes).Shares in the Asian Pacific markets were mostly lower with Japan's Nikkei leading the way. The made a new 34 year high.Japan's Nikkei 225, rose 1.77%China's Shanghai composite index , 0.31%Hong Kong's Hang Seng index, 1.27%Australia S&P/ASX, 0.50%Looking at the US debt market, yields are trading lower after an up and down session in yields yesterday:2 year yield 4.337%, 3.4 basis points. Yesterday at this time, the yield was at 4.341%5 year yield 3.933%, 4.8 basis points.. Yesterday at this time, the yield was at 3.945%10 year yield 3.988% 4.2 basis points.. Yesterday at this time, the yield was at 3.996%30 year yield 4.168% 3.2 basis points. Yesterday at this time, the yield was at 4.172%The 2 10 year spread is at 34.9 basis points. At this time yesterday, the spread was at 34.5 basis pointsThe 2 30 year spread is at 17.0 basis points. At this time yesterday, the spread was at 16.7 basis pointsIn the European debt market, the benchmark 10 year yields are lower: This article was written by Greg Michalowski at www.forexlive.com.