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The dollar moved broadly higher in N.Y. on Thursday, with EUR-USD losses leading the way. The market got a head start on the imminent ECB QE kickoff, as German yields fell to record lows, widening the differential in favor of the dollar, and setting off a slow but steady EUR-USD sell-off. Read more
On January 8, with Oil prices at about $48/barrel, I wrote that http://bonddad.blogspot.com/2015/01/the-bottom-in-gas-prices-is-close.html The Bottom in Gas Prices is Close, saying: Read more
The dollar has traded mixed in London, losing ground to the yen, while firming up versus the CAD and pound. EUR-USD plied a narrow range, centered by the 1.1350 level. Following Fed chief Yellen's testimonies this week, which sent the baseline message that the Fed is in not immediate rush to tighten policy, the dollar's yield advantage has shrunk to the 162 bp area at the 10-year T-note versus Bund level, down about 10-13 bp from Monday. Read more
The dollar has traded mixed, firmer against the yen and Aussie, but lower against the euro and sterling. EUR-USD traded to the upper 1.13 regions. Following Feb boss Yellen's testimonies this week, which sent the baseline message that the Fed is in not immediate rush to tighten policy, the dollar's yield advantage has shrank to the 162 bp area at the 10-year T-note versus Bund level, down about 10-13 bp from Monday levels. Read more
Earlier this month I wrote that housing was primed for a breakout to the upside (and since what happens to housing this year is likely to show up in the broader economy next year, that is good news). While housing didn't break out to new highs, the trend of gradually improving numbers has continued. As I've written many times before, interest rates lead new housing sales and starts, and sales of new housing leads prices. Read more
FX trade was sluggish in N.Y. on Wednesday, with narrow ranges the rule for the major dollar pairings. EUR-USD was steady, ostensibly as markets awaited EU parliamentary testimony from ECB chief Draghi. At the end of the day however, the event was a bit of a dud for markets, with little attention paid by newswires, or the markets. Read more
FX trade was relatively quiet in London morning trade, with little in the way of data to drive prices, and nothing new to report on Greece. For the most part, traders remained near the sidelines, in anticipation of ECB Chief Draghi testimony to the European Parliament later in the session. Read more
EUR-USD has traded firmer following Fed boss Yellen's testimony before the Senate as she retained the view already espoused that the Fed would remain "patient" for now. This disappointed some who had been anticipating something a tad more hawkish, but clearly she did not want to pre-commit ahead of the upcoming March 17-18 FOMC meeting. Read more
Fed Chair Yellen didn't ruffle too many feathers through her Senate Banking Committee testimony on Tuesday. Yields and the dollar initially rose following the release of her prepared text, though quickly reverted to pre-testimony levels, before easing back further. Read more
. While housing didn't break out to new highs, the trend of gradually improving numbers has continued.
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