This year we’ve been forced to be equity traders, commodity traders and now we’re forced to be bond traders. Treasury prices are no longer trading in their typically staid fashion, they’re trading like emerging market currencies. In other words, they are jumping around like crazy. The sharp opening rally in the Treasury market has stalled and yields have backed up to the 3.62 level. The greenback has fallen into a consolidation, after a plunge as well.
Dealers noted major dollar selling during the greenback’s slide from a well-connected US investment bank. Perhaps they saw something in the Treasury market that gave them comfort in assuming a bit more risk…
EUR/USD should find support on dips to 1.3900 near-term while 1.3955 is now stronger resistance having been tested once. EUR/USD trades at 1.3930.
