What's Moving Markets continuous on Forex Forum Key Items:, EZ- ECB, US- Productivity, Crude, Beige Book. The forex trading theme of the week remains central bank policies. The ECB is meeting now and the outcome of its conference is due on the NY open . Markets are hoping for some action from the central bank, but it is unclear what they will do. The emergency G7 Finance Ministers phone conference on the European situation ended with no actions on policy. Although Japanese FinMIn Azumi said there was discussion of unwarranted JPY strength. Australia saw GDP data that was much stronger than expected and has given the Aussie a strong lift.. The EURUSD remains in a major downtrend. The 10-yr bund is 1.27%, +6 bp. The key EURUSD 20-day average is 1.2642. Key European bourses are higher. The U.S.10-yr is 1.60%, +4 bp. Key Asian bourses closed mostly higher. The 10-yr JGB is 0.86%, +4 bp. The key USDJPY 20-day average is 79.39. EURJPY 20-day average is 100.38. USDJPY is up and the EURJPY is stronger. 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). .
| Forex | #REF! | GBP vs. | 9:35 | |||||
| EUR | 1.2508 | 56 | JPY | 98.91 | 87 | JPY | 122.12 | 101 |
| GBP | 1.5443 | 61 | GBP | 80.99 | 4 | CHF | 148.25 | -9 |
| CHF | 0.9600 | -44 | CHF | 1.2008 | -1 | CHF vs. | ||
| JPY | 79.08 | 35 | JPY | 82.37 | 73 | |||
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
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.
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