FXTM information and reviews
Libertex information and reviews
FxPro information and reviews
FIBO Group information and reviews
FIBO Group
FXCM information and reviews
OctaFX information and reviews

BTC up amid sell off in Treasuries

17 February 2021

The selloff in Treasuries deepened as the market returned from its long Presidents Day weekend. The stock rally started to run out of steam, while the selloff in bond markets continued. The bear steepener remained fully intact as the reflation trade and technicals gripped the market. 10-year Treasury yields reached levels last seen in February 2020 yesterday, before falling back -1.5 bp and settling around the 1.3% mark. Longer dated yields are at or near 1-year highs. But even when the full equity rally fizzled and the USA100 fell into the red, bond yields continued higher. A stronger than expected Empire State index also supported the bearish case in bonds. 

JGB rates have lifted 2 bp to 0.094% and bonds also sold off in Australia and New Zealand, leaving rates more than 8 bp higher on the day. Meanwhile the JPN225 corrected -0.6%, despite an unexpected rebound in core machinery orders. GER30 and UK100 futures meanwhile are down -0.04% and up 0.3% respectively, while US futures are posting fractional gains after a mixed session in Asia.

Equities have already come a long way and there may not be much appetite to push valuations out further at this point, but stimulus hopes and vaccine developments continue to fuel reflation trades and central bank efforts to try and slow the rise in yields by stressing that monetary policy will remain accommodative, risk fuelling a bubble in speculative assets that could come back to haunt markets further down the line.

In FX markets USDJPY dropped back to 105.96, amid a broadly higher yen, although the Dollar rose against most other currencies.  USOIL meanwhile is trading at $60.19 per barrel. EURUSD dropped back to 1.2070, Cable to 1.3868. Bitcoin rose, again, through $50,000 as signs of big investor interest in the asset drive more and more buying. Gold prices extended losses for a fifth straight session on Wednesday, slipping to near 2-week lows as soaring US Treasury yields and a firmer Dollar dented the bullion’s appeal.

Today – Data releases today focus on US Retail sales and Canadian inflation for January, along with the FOMC minutes.

The FOMC minutes to the January 26, 27 policy meeting should underscore the Fed’s commitment to a lower for longer rate stance, with no intention of trimming QE. We know the meeting resulted in no change in policy and so the minutes will not break any new ground. Indeed, last week Chair Powell’s sombre outlook where he emphasized the need for ongoing support from monetary policy due to the pandemic was in keeping with the tweaks in the January policy statement. One such tweak was that the Fed’s acknowledgement that “the pace of the recovery in the economy and employment has moderated in recent months, with weakness concentrated in the sectors most adversely affected by the pandemic.” We’ve also heard  Fedspeak that the entire FOMC is generally on board with this posture, including allowing inflation to run hot for some time.

Biggest (FX) Mover @ (07:30 GMT) NZDUSD (-0.40%) extended losses below 20-DMA. Next Support remains at the 50-DMA at 71.60. MACD lines and RSI are neutral but still turning lower while intraday they are both negatively configured, with fast MAs sloping further lower.



Bitcoin price drops to $52K, liquidating almost $10B

Bitcoin (BTC) fell to sudden lows of $52,000 on April 18 in a timely reminder of how price action often follows hash rate. Cointelegraph Markets Pro and TradingView...

19 Apr 2021

Bitcoin Price Lifts Crypto Stocks Ahead of Coinbase Listing

Listed firms that deal in cryptocurrencies or have exposure to them saw a field of green in global markets Wednesday, ahead of the much-anticipated direct...

15 Apr 2021

Rally in the cryptocurrency market

Updating historical highs by any asset is considered a landmark event, but not in the current year. Starting from the main US stock indices and up to the majority...

14 Apr 2021

Bitcoin hits new all-time high above $63000

Bitcoin surged to a fresh record high of more than $63,000 on Tuesday, as investors awaited the highly-anticipated stock market debut of cryptocurrency exchange...

14 Apr 2021

Bitcoin on-chain data suggests no bull market top at $60K

For the very first time in a Bitcoin (BTC) bull market, not only long-term investors but also short-term speculators who usually add to the daily sell pressure...

12 Apr 2021

XRP is up roughly 20% over the past 24 hours

Ripple Labs has been granted access to U.S. Securities and Exchange Commission documents expressing the agency's interpretation or views on the subject

7 Apr 2021

Editors' Picks

© 2006-2021 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.