Italian banking concerns leading to move into safety
The news that the ECB supervisory board has decided to reject more time to raise capital for Monte Dei Paschi, has led to a flight into the safety of the government debt. The 10 year Bund has moved down and is now down about 6 basis points on the day (see tick chart of action today below). The US 10 years was trading as high as 2.443% but is now trading unchanged on the day at 2.045%.
The USDJPY earlier today moved above the resistance areas defined by 114.44-54 (swing highs from March 2016), and the 114.86 level (swing high from mid Fed, 2016. IT also moved above the 100 week MA at 114.683. The high price extended to 115.27 but has quickly reversed and traded as low as 114.61 (currently trade at 114.78).
Do we now reestablish the resistance at 114.86. We are back up testing that level after the fall. Be aware.
