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U.S. Yields Looking Like a Key for Forex Today
01/02/2018 3:15 pm EST
What hasn’t happened is a higher USD and that may be the key for trading the markets today until we get the all-important ISM and Jobs reports later this week, writes Bob Savage of Track Research Tuesday.
The euro (EUR/USD) rebounds in 2018 start to three-year highs.
The European PMI reports are part of the story while FOMC policy doubts and low inflation worries persist on the U.S. dollar (USD/EURO) side.
The headlines are about China and Europe PMI reports beating expectations while Iran suffers its worst protests in a decade putting oil back in the spotlight.
What seems clear from the start of the day is that markets are still using the 2017 playbook. European equities are lower with the EUR gains.
The robust start of markets in Asia reflects renewed growth hopes from the region and ongoing U.S. demand. The risks of anything new happening today start with the reversal in U.S. shares and mood.
The selling of Friday reverses and brings higher U.S. rates. What hasn’t happened is a higher USD and that may be the key for trading the markets today until we get the all-important ISM and Jobs reports later this week.
Until then we are all technical traders with last year’s games to remember. U.S. yields are looking like the key still for forex as the 2.44% breakout beckons with 2.505% the target ahead of real news.
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