Page 4 - Year Yield News Today

Cable (GBP/USD) is under pressure again, and nearing a break below 1.1900, as US Treasury yields soar to multi-month highs, boosting an already robust US dollar.

Follow through for USDJPY after its break may prove difficult as neither interest rate differentials nor the Greenback’s ‘risk aversion’ are currently supporting the bullish move

The ‘disinflationary process has started’ according to Fed chair Jerome Powell at last night’s FOMC press conference, a comment that pushed the greenback to a fresh multi-month low

We are moving into more serious fundamental waters Thursday with the US 4Q GDP reading on tap; and Dollar traders frustrated by the tight range will be watching with anticipation

Risk trends seemed on solid footing through much of the Wednesday session until a collapse began in US hours that lasted through the close and pulled SPX down -1.6 percent

The S&P 500 posted its biggest weekly advance in 2 months to the threshold of breaking its bear trend while the Dollar posted an equivalent historical loss to land at its 2021-2022 midpoint

With US bank earnings on tap before the open Friday, enthusiasm or warning could help push the markets to ‘break out’ or tip it into ‘reversal’

Fed Chairman Powell’s remarks and the NFIB business sentiment survey sliding this past session wouldn’t urge the S&P 500 nor Dollar into a productive trend

The upcoming CPI release will likely trigger volatility across the market – including for oil – but this commodity tends to draw more on the macro factors of growth and interest rates

While the market’s sidled higher with a backdrop of tempered rate expectations, there is significant contrast in recession risks and risk from extremely complacent conditions