The treasury borrowing announcment kickstarts stock and bond buying/dollar moves lower

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 Source