We’re back to watching a single indicator. For months it was oil, then gold, then stocks….now it is the US bond market. Up and down with yields we go.
10-year notes are ending the session near their highs for the day and with a single bp of the week’s high. EUR weakness this morning was fueled by a combination of somewhat softer US yields after the poor new home sales report combined with a big back-up in European yields. That back-up in yields also fueled a EUR/GBP rally.
Both those trades are running out of steam near-term. EUR/USD should find support at 1.43.00 near-term while EUR/GBP support is down at 0.8960. EUR trades at 1.4328; EUR/GBP at 0.8977.
