12 May 2015
Forex: Market chasing EUR stops – MP
FXStreet (Barcelona) - The EUR stands supported by the tightening of the US-Bund spread and the Forex market chasing the weaker stops as EUR/USD trades above the key 1.1219 and 1.1257 levels, notes Dean Popplewell, VP of Currency Analysis and Research at MarketPulse.
Key Quotes
“The 10-year U.S. Treasury yield hit a fresh six-month high overnight (+2.31%), but that was not enough to stop the USD slipping back as German bund yields have rallied (+0.68%) more aggressively, tightening the U.S.-bund spread (+163 basis points), which is also aiding the EUR.”
“Receding deflation concerns, upcoming supply issues, and worries about trading liquidity have all been cited as reasons behind the recent selloff of U.S. debt product.”
“Not to be underestimated, the market is also chasing the weaker stops of the most recent speculative bets now that the EUR has penetrated key speculative levels (€1.1219 and €1.1257), supported by liquidity issues.”
Key Quotes
“The 10-year U.S. Treasury yield hit a fresh six-month high overnight (+2.31%), but that was not enough to stop the USD slipping back as German bund yields have rallied (+0.68%) more aggressively, tightening the U.S.-bund spread (+163 basis points), which is also aiding the EUR.”
“Receding deflation concerns, upcoming supply issues, and worries about trading liquidity have all been cited as reasons behind the recent selloff of U.S. debt product.”
“Not to be underestimated, the market is also chasing the weaker stops of the most recent speculative bets now that the EUR has penetrated key speculative levels (€1.1219 and €1.1257), supported by liquidity issues.”