AUTOREFRESH 
EUR/USD approaching 1.2880 resistance
By Jamie Coleman || May 5, 2010 at 14:24 GMT
|| 6 comments || Add comment
A rebound in equity markets has helped spark a relief rally in EUR/USD and EUR crosses. EUR/USD is now at 1.2870, nearing 1.2880 resistance. Expect some selling into the rebound from trapped longs.
On the wires, the Greek PM is speaking. He says tough measures must be taken to secure the future, not backing down from austerity despite today’s deaths as a result of protests in Athens.
Anyone can explain why is the German 10-year bund yield falling???
Thx
I would imagine a total wash-out ahead of the [no-decision] ECB Interest Rate Decision……..
light to quality…bailing out of Greek, Portuguese, Spanish, Italian, Irish debt and putting money into the safe-havens…Same reason US yields sliding…
Classic flight to safety along with the bid in the schatz. They are getting out of everything and buy bunds instead. (there s a lot of trading behind that along with some real money). Some even think the ECB will have to cut rates (it would have no effect as the markets trades already at the floor of ECB rates.) Some bet the german lawmakers won’t vote the greek aid too.. I don’t think either will happen and will soon realize Germany now borrows fund for the rest of Europe. But ftb it s a classic armagedon trade.
One thing to note though, if markets were really scared they would only touch the short end of the curve, still there s a rush on the long end too. some might get hurt at one point.
Thanks guys