In general, the US dollar is higher so far today as markets assess the week before the weekend. Unsurprisingly, among the major currencies, Sterling has underperformed the most as a result of Prime Minister Liz Truss' resignation. The GBP/USD exchange rate is stuck below 1.1200.
There are currently no indications of government selling as USD/JPY remains just above 150. Shunichi Suzuki, the Japanese Finance Minister, appeared to be ignoring the Bank of Japan's (BoJ) implementation of the Ministry of Finance's ultra-loose monetary policy as he thought about fighting speculators (MoF).
The national headline CPI for Japan came in at 3.0% year over year, slightly higher than the 2.9% expectation. The core number also increased by 3.0% over the previous year, but that was expected.
The Australian ASX 200, which fell roughly 1%, has been the biggest mover in the equity markets during the Asian session. The North American cash session is expected to start slowly, according to futures.
In the Asian session, Treasury rates across the curve are a few basis points higher than they were in the US session. Today, the benchmark 10-year bond reached 4.27%, the highest level since 2008.
Gold is little weaker than usual and crude oil is slightly higher than usual so far today, but both commodities are headed for another down week.
Canada will similarly receive retail sales information after the UK. Williams and Evans from the Fed are anticipated to say something later today that will be broadcast on the media.
Canada will likewise receive data on retail sales following the UK. Williams and Evans of the Fed are also anticipated to say something later today that would make headlines.
A US Dollar index called the DXY is weighted against the following currencies: EUR (57.6%), JPY (13.6%), GBP (11.9%), CAD (9.1%), SEK (4.2%), and CHF (3.6%).
After reaching a 20-year high at the end of last month at 114.78, the DXY index is still in an upward trend channel and might present resistance.
The price has recently crossed back over the 10- and 21-day simple moving averages (SMA), which may indicate that positive near-term momentum is starting to pick up again.
The fact that the price is still above the 55, 100, and 260-day simple moving averages (SMAs) on a medium and long term basis may indicate that underlying bullish momentum may continue to develop.
Support and resistance may be seen in the recent range of 111.77 to 113.92.
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