Forex Trading Talk 10:00 GMT 16 March 2012

Trade Talk: What's Moving Markets continuous on Forex Forum Key Items: US- CPI, Industrial Prod, University of Michigan Survey.

We will be watching Industrial Production and the University of Michigan sentiment data more than the CPI data today amid another cluster of  U.S. data releases. Markets should be most focused on figures that provide a measure of strength of the economy.

We are monitoring any signs of portfolio shifts in the U.S. out of bonds and into equities. On this score, we did not see additional erosion in fixed income prices on Thursday.

The spotlight y been on the the 10-yr note yield  which is last 2.30% vs. a 2.01% Monday close.

Check the Forex Forum over the day for an updated and ongoing discussion of current trading themes in the MARKET CHATTER continuous discussion thread.

Forex pairs vs 2-yr note spreads

Some traders focus intently on the Japan vs. U.S. 2-yr note spread (only the U.S. 2-yr moves much).

COMMODITIES and Commodity Currencies

EQUITIES & INTEREST RATES

Bonds are a counter to risk trades because risk investments must be financed. When the cost of money moves up (higher interest rates), the return and allure of risk trades such as equities falls. 

See ECONOMIC CALENDAR for a complete list of future forex market events and consensus data estimates. Go to the forex forum for up-to-date market developments and technical trading ideas.
John M. Bland is an author and co-founder and partner of Global-View.com. Prior to Global-View.com, he was a forex trader and a private-label forex analyst for a top Fed watching service in NYC. He has been a corporate forex advisor and also worked in international liability management for a major N.Y. money center bank. John holds an MBA from the University of California at Berkeley and a B.A. in International Economics from that school.
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