Tag Archives: ECB

The Global Macro Pulse

The USD recovered slightly in Asia. The EURUSD edged down to 1.2633,

German yields initially headed higher yesterday, but all that changed, when equity market falls accelerated.

EURUSD has outperformed, rising to 1.2620, AUSDUSD has edged up to 0.8752 and

German bond yields fell yesterday morning, and then moved sideways for most of the day.

In G10, EUR and JPY were both flat to Friday’s NY close around 1.252 and 109.6 respectively.

Bonds initially took a beating on solid US payrolls growth on Friday, but later recovered, as wage gains continued to be muted.

Markets still have faith in the ECB The 40-day rolling correlation between the EUR/USD and

The major currencies have drifted sideways ahead of US payrolls. EURUSD is at 1.2655,

European equity prices plunged yesterday, as Draghi’s message did not sound as dovish as many were hoping.

FX markets have been all about a USD squeeze. EURUSD popped up to 1.2662,

A huge bond rally took place yesterday, especially in the US, with curves bull-flattening and equities taking a beating.

German bonds continued to rally yesterday, with the 10-year yield down another 2bp.