• 847 days Will The ECB Continue To Hike Rates?
  • 848 days Forbes: Aramco Remains Largest Company In The Middle East
  • 849 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,249 days Could Crypto Overtake Traditional Investment?
  • 1,254 days Americans Still Quitting Jobs At Record Pace
  • 1,256 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,259 days Is The Dollar Too Strong?
  • 1,259 days Big Tech Disappoints Investors on Earnings Calls
  • 1,260 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,262 days China Is Quietly Trying To Distance Itself From Russia
  • 1,262 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,266 days Crypto Investors Won Big In 2021
  • 1,266 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,267 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,269 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,270 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,273 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,274 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,274 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,276 days Are NFTs About To Take Over Gaming?
Is The Bull Market On Its Last Legs?

Is The Bull Market On Its Last Legs?

This aging bull market may…

How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

  1. Home
  2. Markets
  3. Other

Spreads and Sentiment

Putting aside hard and soft data, yield differentials continue to command FX markets as the German-US 10 year yield spread breaks above its 200-day MA for the 1st time since August to hit -1.90%. The story, however, is not only in the break of the average, but also in the fact that the formation of the spread consists of higher lows and higher highs since the December bottom, which is the same formation for EURUSD, gold and most "anti-USD" instruments.

German-US 10-Year Spread
Larger Image

The next key technical barrier for the spread stands at -1.70%, which marks the trendline resistance from the January 2015 highs. Much technical work remains to be done for euro bulls to secure lasting stability.

But with speculative euro futures positioning entering positive territory for the 1st time since 2014 and with these contracts, "sentiment" should further pick up for the currency due to the fact that the 22,399 representing net long contracts, is well below the 121,000 record high from 2007, which argues against the popular & often erroneous notion of improved euro sentiment being excessive.

 

Back to homepage

Leave a comment

Leave a comment