The lower than expected borrowing numbers from the Treasury is leading to:
- Stocks moving higher
- Bond prices moving higher/yields lower, and the
- USD to the downside.
Looking at the US stock market, the NASDAQ index is now up 163 points or 1.05%. The S&P index is up 33.81 points and trades at a new record high level. The Dow Industrial Average is up 200 points or 0.52%.
Looking at the US debt market:
- 2-year yield 4.311% -5.3 basis points
- 5-year yield 3.972% -8.9 basis points
- 10- year yield 4.064% -9.6 basis points
- 30-year yield 4.306% -8.3 basis points
Looking at the forex market:
- The EURUSD – which bounced off its 50% midpoint at 1.07936, is backup looking to test it 200 day moving average 1.08420. The high price it just reached 1.0840. A move above the 100-day moving average opens the door for further upside momentum.
- The USDJPY is falling below its 100-day moving average at 147.575. The low price just reached 147.25. The next target area comes between 146.96 and 147.067.
The GBPUSD bottomed near its 50% (like the EURUSD) and has now moved up the 200 and 100-hour MA at 1.2703 to 1.27087
.
This article was written by Greg Michalowski at www.forexlive.com. Source