US dollar slides as Treasury yields fall

US dollar under pressure

US 10 year yields

US 10-year yields are down 10 basis points today with the entire curve moving down.

It reflects fear about the new covid variant after the comments from Moderna's CEO saying the vaccine might not be effective.

The market is pricing out Fed rate hikes and it's particularly troublesome for USD/JPY. That pair is through the November lows and at the worst levels of the day and without much support below.

USDJPY

What's interesting is that -- despite all the fear -- NZD and AUD are both about where they were when the omicron fears kicked off.

Invest in yourself. See our forex education hub.


December 01, 2021 at 02:51AM
Adam Button
https://ift.tt/3D6cVqQ

Comments

Post a Comment

Popular posts from this blog

Forex Trading For Beginners , why not everyone will be successful

 Forex trading, or foreign exchange trading, is the act of buying and selling currencies in the foreign exchange market with the aim of making a profit. While it is accessible to beginners, not everyone who tries their hand at forex trading will be successful. There are several reasons for this: 1. Lack of Education and Knowledge: Forex trading is a complex and dynamic market. Many beginners jump into trading without taking the time to educate themselves about how the forex market works, including factors that influence currency movements, technical and fundamental analysis, and risk management. This lack of knowledge can lead to costly mistakes. 2. Insufficient Preparation: Successful forex trading requires careful preparation and planning. Beginners often underestimate the importance of having a well-defined trading strategy, setting realistic goals, and developing a risk management plan. Without these preparations, traders are more likely to make impulsive decisions and suffer l...
Read more

Forexlive European FX News 11 Oct: JPY weakness sends the USDJPY higher to 113

Image
Risk leans on, but risk remains Other markets FTSE +0.32%  Dax -0.47% CAC -0.34% Bitcoin +2.77% Gold -0.14% US oil +2.95% Markets started risk on to start the week with the absence of any immediate fear. The JPY pairs were all higher as Prime Minister Fumio Kishida's said that he isn't considering capital-gains tax changes at present. the USDJPY touched 113 before pulling back. the continued rise in US 10 year yields really helped add to the shove higher.   Oil markets kept pushing higher on the three main drivers of low inventories, rising demand, and skilled OPEC market communication.  The GBP trades higher too post the comments from the weekend out of Governor Bailey and Saunders around inflation concerns. EURGBP worth a look at as the German/UK bond yield spread sinks lower.  The negotiations over the N.Ireland protocol will be a risk going forward for sudden moves in the GBP .A wider question exists over much further GBP upside. The question is ...
Read more