US yields continue to back-up as the early-week euphoria surrounding anticipation (misplaced, in my view) of QE3 fades as Bernanke’s speech grows closer. Most are now expecting the Fed chief to restate the available monetary tools he still has in the shed behind Fed headquarters.
USD/JPY is bouncing nicely, up to 76.90 as US 10-year notes yield 2.25%, at present. USD/CHF is consolidating in the 0.7955 area, eying heavy stops in the 80.10/25 region should the dollar rally gains some steam.
