USD moves to new lows. Yields trade near lows. Stocks near highs

US yields are moving to new lows. The snapshot shows:

  • 2 year yield 4.81%, -12.8 basis points
  • 5 year yield 4.264% -12.6 basis points
  • 10 year yield 4.111% -10.0 basis points
  • 30 year yield 4.229%, -6.0 basis points

The US yields moving lower, is giving support to US stocks. Looking at them, the major indices are trading near highs for the day and having one of their best days of the month:

  • Dow Industrial Average Ridge is trading up 0.79% which is the biggest move since August 7 when the index rose 1.16%
  • S&P index is up 1.41% which is its biggest move since June 2
  • NASDAQ indexes trading up 1.72% which is it biggest gain since July 28

In the Forex market:

  • EURUSD: The EURUSD Ms. trading at 1.08867. Matt has taken the price above the 38.2% retracement of the August trading range (at 1.08795). The next target area comes around the 50% of the August trading range at 1.0914. The 100 day moving averages above that of 1.09264. On the downside and move back below the 38.2% retracement would have traders targeting 1.0860. PS the 100 bar MA on 4-hour is 1.0898
  • USDJPY: The USDJPY has moved below the 100-hour moving average at 146.03 and now the 200-hour moving at 145.854. The low from Friday at 145.725 was also broken but the price stalled ahead of the 61.8% retracement of the move up from the August 23 low at 145.618. The current price is trading at 145.78. Stay below the 200-hour moving average is the best-case scenario for sellers, but if the price can remain below the 100-hour moving average 146.03, the bias advantage is still in favor of sellers.
  • GBPUSD: The GBPUSD is extending to a new high and in the process is moving back above its 100-day moving average at 1.26427 (see chart below). The next target above would have traders looking toward a swing area between 1.2678 and 1.26988. The following 100 bar moving average on the 4-hour chart is also near the high of that swing area.

This article was written by Greg Michalowski at Source