FXTM information and reviews
IronFX information and reviews
Libertex information and reviews
FXCC information and reviews
Markets.com information and reviews
FxPro information and reviews
46 960.90

Bond yields rising again

13 August 2020

Sentiment is ever present today as the impasse in Washington is reverberating through all markets at present. The USD is trading in mixed fashion but the upper end of its recent range above 94.00 has proved too hot to handle so far today. However, stocks are steady with the US indices looking relatively well-supported.

The move north in bond yields is significant with the US 10-year Treasury yield rising to 0.65%, the highest level since early July. This has been driven by a push higher by both real interest rates as well as breakeven inflation expectations, which is taking its toll on FX markets with USD/JPY trading now firmly above the 106 level.

While global bonds are mostly weaker, the clear exception is NZ government debt after the RBNZ increased its QE programme through more purchases and for longer. The clear signal from the discussions was that the bank favours implementing negative rates combined with QE, if further easing is required.

Dovish RBNZ means softer Kiwi

"It was difficult to imagine a more dovish outcome than we have seen". So said one prominent investment bank in reference to today’s central bank meeting. Interest rates are certainly expected to go lower and with them, the NZD should be under significant pressure over the coming weeks.

AUD/NZD has already broken through to multi-month highs, touching levels not seen since October 2018. A steady channel of higher lows and higher highs may target 1.10 near-term where the long-term 200-month Moving Average comes into view.

Loonie on the up

The CAD is the strongest major so far on the month and has found more support versus its G10 peers this week. Better demand on the crosses has seen USDCAD steady below recent highs and roll over again with the trendline from the March highs working its magic again.

The clear dollar-negative underlying bias is reflected in various oscillators across different timeframes. This should leave ‘King Dollar’ prone to further weakness and a test of key support at 1.3235. Only a move above 1.34 changes this picture.



Dollar jumps, gold slumps, stocks nervous
Dollar jumps, gold slumps, stocks nervous

Worries that the US consumer is rolling over were dealt a major blow yesterday after the nation’s retail sales for August overpowered some gloomy forecasts. The retail sales...

17 Sep 2021

Energy is the play: how we get to $100 crude
Energy is the play: how we get to $100 crude

Natural gas futures in Europe and the UK are flying, while our natural gas (NG) CFD (the underlying is traded on the NYMEX) pushed over $5.60 and into 7-year highs...

16 Sep 2021

Are investors sleeping on systematic risk in China?
Are investors sleeping on systematic risk in China?

It’s time to talk about China. The situation is getting dicier as the nation’s second-largest property developer - Evergrande - is on the verge of default. Trading in the company...

16 Sep 2021

Sentiment sours as the S&P 500 tests key support
Sentiment sours as the S&P 500 tests key support

We head to quadruple witching in the US on Friday and notably options expiration (OPEX), and the weakness we see time and again in the week before seems...

15 Sep 2021

Dollar unscathed by soft inflation, equities resume slide
Dollar unscathed by soft inflation, equities resume slide

Dollar takes little damage despite signs US inflation has peaked - Wall Street resumes selloff - all eyes on China contagion risks - Canadian data coming up ahead of elections, gold wakes up...

15 Sep 2021

US inflation under the microscope
US inflation under the microscope

With the Fed having almost locked in a November taper announcement, the question now is whether Chairman Powell will use next week’s policy meeting to give the markets...

14 Sep 2021

Forex Forecasts

OctaFX information and reviews
HotForex information and reviews
XM information and reviews
FXCM information and reviews
Vantage FX information and reviews
Vantage FX
Moneta Markets information and reviews
Moneta Markets

© 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.