News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bearish
Oil - US Crude
Mixed
Wall Street
Bearish
Gold
Mixed
GBP/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • Has anyone explained the risk of inflation on the markets in terms of tendies?
  • The US Dollar is trying to break higher versus ASEAN currencies. The Singapore Dollar, Philippine Peso, Thai Baht and Indonesian Rupiah are under pressure. Will follow-through last? Get your market update from @ddubrovskyFX here:https://t.co/JOWG9q01q0 https://t.co/j2ICxgrLa3
  • The commodity-sensitive Canadian Dollar may continue outperforming its major counterparts in the coming weeks. USD/CAD, CAD/CHF, CAD/JPY and EUR/CAD key levels to watch. Get your $USDCAD market update from @DanielGMoss here:https://t.co/9bkVXQuP5C https://t.co/cLNEG36mZ8
  • We just closed out the heaviest week of volume for the $SPY (US equities) since June and $TLT (Treasuries) since March 16
  • Get your snapshot update of the of market open and closing times for each major trading hub around the globe here: https://t.co/BgZLFljIhZ https://t.co/YjUfOUY3vU
  • Forex Update: As of 21:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: -0.30% 🇨🇭CHF: -0.41% 🇬🇧GBP: -0.62% 🇨🇦CAD: -1.12% 🇳🇿NZD: -1.87% 🇦🇺AUD: -2.11% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/ZdHY0q1ocW
  • #Gold Price Forecast: Gold Breakdown Accelerates – $XAUUSD Bulls Done? - https://t.co/uATlmZg8g6 https://t.co/vIbhg5HOko
  • Commodities Update: As of 21:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.20% Gold: -2.10% Silver: -2.97% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/UVS4Dowq2o
  • Nasdaq ETF QQQ sees its largest outflow in a month as investors shied away from tech stocks. Get your #Nasdaq market update here:https://t.co/tQU09WVHMD https://t.co/onCVQl0xay
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 93.13%, while traders in GBP/JPY are at opposite extremes with 67.63%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/PYZh1az5EC
Why Impact on USD of Surge in Treasury Yields Might be Limited

Why Impact on USD of Surge in Treasury Yields Might be Limited

Martin Essex, MSTA, Analyst

USD Talking Points:

- US government note and bond yields rose sharply Wednesday after Bloomberg reported that China may halt its purchases of US Treasuries.

- The USD fell in response but the effect on the currency could be limited as no final decision has yet been taken and China has already cut its buying substantially.

Like to know about the Traits of Successful Traders? Just click here

Or New to Forex? That guide is here

The US Dollar weakened Wednesday after the Bloomberg news agency reported that China may halt its purchases of US Treasuries. The yield on the benchmark 10-year Treasury note was nearly five basis points higher at 2.588% in early US trading, helping weaken the US Dollar Basket (DXY) to 91.52 from 91.80 when the report was published.

That reflected market jitters that prompted a move into safe-haven currencies like the Japanese Yen and the Swiss Franc.

USD Basket Price Chart 5’ Timeframe (January 10, 2018)

Why Impact on USD of Surge in Treasury Yields Might be Limited

Chart by IG

While the 5bp rise in the Treasury note yield was the principal move, 10-year yields were also up elsewhere. The yield on 10-year German Bunds was up 2bp at 0.476% and the yield on 10-year UK Gilts was 1bp higher at 1.297%. The 10-year Japanese Government Bond (JGB) yield bucked the trend, trading flat at 0.087%.

US 10-Year Treasury Note Yield Chart 5’ Timeframe (January 10, 2018)

Why Impact on USD of Surge in Treasury Yields Might be Limited

Sovereign bond yields rose globally after news Tuesday that the Bank of Japan had cut the amount of government bonds purchased, casting the spotlight again on the likelihood that central banks from Japan to the Euro-Zone may begin to trim their monetary-stimulus policies this year.

However, there is little new in this; a withdrawal of monetary stimulus has been expected for some time. Moreover, the Bloomberg report noted that so far officials have simply recommended slowing or halting purchases of Treasuries – it is not yet clear whether this been adopted as policy.

Moreover, Chinese net purchases of Treasuries have already slowed significantly so the impact on USD will likely be less than if the report had been totally unexpected.

--- Written by Martin Essex, Analyst and Editor

To contact Martin, email him at martin.essex@ig.com

Follow Martin on Twitter @MartinSEssex

For help to trade profitably, check out the IG Client Sentiment data

And you can learn more by listening to our regular trading webinars; here’s a list of what’s coming up

Check out our Trading Guides: Several new ones are now available including Forex for Beginners, Building Confidence and Traits of Successful Traders

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES