Archived IMT (2010.01.11)
DEUTSCHLAND-US YIELD SPREADS: Now that youve seen our chart on the correlation between UK-US Yield Spreads & GBPUSD, lets look at the resurging relationship between the German-US 10 year yield spread and EURUSD. http://chart.ly/m7mtf6 EURUSD remains capped at $1.45 as the WIDENING YIELD GAP continues to favour the US relative to Germany (DE-US spread = -0.44%). Chart below shows the correlation between 10 year yield spreads & EURUSD has recovered since November to hit 0.54 (STRONGER CORRELATION), highlighting credit markets' response to the Fed's intention to conclude its asset purchases next month. The Nov jobs report was instrumental in greasing the wheel for the US yield advantage, which is set to retest November's 2-year highs (in favour of USD). The sudden silence in the Eurozone regarding the credit and banking troubles may help back our expectations for $1.38 before quarter's end on the heels of further pro-USD yield gap. This is in line with Thursday's note on UK-US yield gap, which we expect to go into negative territory in May. The chart speaks for itself. We sent this chart to CMC Markets clients right after Fridays jobs report. Bloomberg now has an article about it in its home page. WE STILL NEED SUPPORT from those who haven't voted http://shortyawards.com/alaidi
Latest IMTs
-
Of Gold Extensions مقياس إمتدادات الذهب
by Ashraf Laidi | Apr 15, 2024 16:38
-
Bitcoin performance & Miners Prehalving
by Ashraf Laidi | Apr 9, 2024 17:07
-
English Translation to Arabic Interview
by Ashraf Laidi | Apr 7, 2024 21:01
-
فشل الفدرالي في إقناع الأسواق
by Ashraf Laidi | Apr 6, 2024 14:17
-
Typical Errors on Gold, Silver, USD
by Ashraf Laidi | Apr 1, 2024 16:14