Trade Talk: what's Moving Markets continuous on Forex Forum Key Items: US-CPI, Retail Sales, CPI, Empire PMI, TIC Data Bus Inv. NAHB, API.
A slew of data are set for release from the U.S. today. Tuesday. Greece remains on headline watch as discussions about forming a new government are running out of time. If declared, a new election would likely be on June 17.
Chancellor Angela Merkel and French President Hollande will meet for the first time later today. The German headline ERF survey was a weaker than expected 10.8 vs. 16.9 forecasted. The composite EZ GDP was 0.0% qq and 0.0% yy. in 1Q12.The 10-yr bund is 1.47%, 1 bp. The key EURUSD 20-day average is 1.3111. Key European bourses are modestly higher. The U.S. 10-yr is 1.78% 0bp.
Key Asian bourses closed mixed. The 10-yr JGB was 0.85%, 0bp. The USDJPY is steady. The key USDJPY 20-day average is 80.49. EURJPY is higher. Its 20-day average is 105.54.
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). .
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COMMODITIES and Commodity Currencies
Click on Chart is a daily vintage art poster
EQUITIES AND INTEREST RATESBonds are a counter this 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.
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