Around the much anticipated headlines streaming from the US, the backdrop for the US dollar remains largely weak particularly against Asian and commodity currencies. US 2y yields are dipping towards all time lows at 31bp and although both 2s and the S&P 500 are holding within range, we highlight the levels to overcome to suggest a break from the recent impasse in Figure 1.
In commodity currencies, NZD/USD remains a star performer and still holds further bearish room while EUR/NZD is posting lows not seen since the late 1990s (targets at 1.6100 approaching). USD/KRW below 1044/47 would be another negative signal for the USD in the Asian region.
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BARCLAYS CAPITAL
TECHNICAL RESEARCH