11 Feb 2015
US yields might support USD if they remain at current levels – MP
FXStreet (Barcelona) - Dean Popplewell, Director of Currency Analysis at MarketPulse, comments that with U.S short-term yields trading near their one-month highs, further USD strength can be anticipated against the EUR, JPY and CHF if the front-end yields remain at current levels.
Key Quotes
“With U.S short-term yields trading atop of their one-month highs, pushed there after last week’s non-farm payrolls report, continues to provide the USD support.”
“Yesterday’s JOLTS job opening data in the U.S came in at a 14-year high and certainly solidifies the buoyant jobs scene in the U.S.”
“The market perhaps now should be anticipating a change to Fed rhetoric. The possibility of “patient” actually disappearing from next months Fed statement is now more of a reality.”
“Investors need to focus on front-end yields to gage support for the dollar. If they remain close to current levels then yield differentials will obviously favor the USD versus, JPY, EUR and CHF.”
“However, with heightened “event” and “political” risk investors should not be willing to force their positioning.”
Key Quotes
“With U.S short-term yields trading atop of their one-month highs, pushed there after last week’s non-farm payrolls report, continues to provide the USD support.”
“Yesterday’s JOLTS job opening data in the U.S came in at a 14-year high and certainly solidifies the buoyant jobs scene in the U.S.”
“The market perhaps now should be anticipating a change to Fed rhetoric. The possibility of “patient” actually disappearing from next months Fed statement is now more of a reality.”
“Investors need to focus on front-end yields to gage support for the dollar. If they remain close to current levels then yield differentials will obviously favor the USD versus, JPY, EUR and CHF.”
“However, with heightened “event” and “political” risk investors should not be willing to force their positioning.”