A fair sized line in the sand here around 2.40% and one that a meaningful break could see them tumble.
US 10 year yields 14 08 2014
The move has dragged the dollar down with it and was aided by the import price data which has been another indicator that says inflation isn’t coming anytime soon. That’s going to weigh marginally on rate expectations.
USD/JPY isn’t feeling too much pain but USD/CHF is as EUR/USD pushes up through 1.3400 but again finds the break brief. USD/CHF has been finding the 0.9100 level a tough nut to crack and we’ve been down to 0.9035 in this latest move. EUR/CHF is being dragged down too and to the lowest since mid March.
EUR/CHF Daily chart 14 08 2014
We’ve not been below 1.21 since Jan 2013 and I’d suspect that we might see some unofficial SNB interest lurking here, even though they say they haven’t intervened for some time.
If you were looking for a cheap place to load up then this spot might be of interest.
