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
EUR/USD
Bearish
Oil - US Crude
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
Wall Street
Mixed
Gold
Mixed
GBP/USD
Bearish
USD/JPY
Bearish
More View more
Real Time News
  • Hey traders! We continue to drag higher for risk assets. What are some market highlights for the day? Find out from @DailyFX Chief Strategist @JohnKicklighter 👇 https://t.co/5BDoY4Ui5d
  • Forex Update: As of 16:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: 0.48% 🇪🇺EUR: 0.24% 🇦🇺AUD: 0.12% 🇨🇭CHF: -0.02% 🇳🇿NZD: -0.13% 🇯🇵JPY: -0.54% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/yNrrT0AZIu
  • 🇷🇺 GDP Growth Rate YoY Prel (Q2) Actual: -8.5% Expected: -9% Previous: 1.6% https://www.dailyfx.com/economic-calendar#2020-08-11
  • #Gold Price Outlook: $XAUUSD Crashes – Reversal or Retracement? - $GLD Levels - https://t.co/LcRBQnc8ge https://t.co/h02MbwzEqm
  • Join @JStanleyFX 's #webinar at 1:00 PM ET/5:00 PM GMT for his weekly update on trading price action. Register here: https://t.co/yu1uNFb2tm https://t.co/mcnWMvlHRj
  • 🇷🇺 GDP Growth Rate YoY Prel (Q2) Actual: -8.5 Expected: -9% Previous: 1.6% https://www.dailyfx.com/economic-calendar#2020-08-11
  • Indices Update: As of 16:00, these are your best and worst performers based on the London trading schedule: Wall Street: 0.97% US 500: 0.30% FTSE 100: 0.19% France 40: 0.04% Germany 30: -0.01% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/rgI6V7Rpvj
  • Heads Up:🇺🇸 Fed Daly Speech due at 16:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-08-11
  • Heads Up:🇷🇺 GDP Growth Rate YoY Prel (Q2) due at 16:00 GMT (15min) Expected: -9% Previous: 1.6% https://www.dailyfx.com/economic-calendar#2020-08-11
  • $AUDUSD turn potential, testing support side of rising wedge, resistance from .7185-.7250 in-play for a few weeks now are bulls finally throwing in the towel after the meteoric rise from March-July? $Aussie $AUD https://t.co/EHPM6BpQvB
Is the Fed or ECB Driving Global Yields?

Is the Fed or ECB Driving Global Yields?

2019-12-23 22:00:00
REAL VISION, Guest Contributor
Share:

FED & ECB IMPACT ON GLOBAL YIELDS - REAL VISION CENTRAL BANK WATCH

Over the summer, central banks entered a ‘vicious cycle’ where dovish monetary policy action like cutting interest rates drove another major push lower in sovereign yields – such as US Treasuries and German Bunds.

With the European Central Bank (ECB) signaling its intent to ‘double down’ on quantitative easing (QE) and the Fed confirming its willingness to match market pricing for lower rates, Juliette Declercq of JDI Research explains how rational investors are jumping at what is thought to be one of the last opportunities to lock in the little positive yielding government debt left on the market.

This move was exacerbated particularly across Europe when the ECB’s Mario Draghi announced ‘QE-infinity’ at the September ECB meeting.

BARCLAY’S GLOBAL AGGREGATE NEGATIVE YIELDING DEBT MARKET VALUE INDEX (IN $USD)

Chart of Global Aggregate Negative Yielding Debt Market Value Index

Consequently, there has been a huge explosion in the market value of negative yielding debt as investors chase yield (or lack thereof). Juliette discusses how dovish guidance from central banks are suggesting a continued move towards ZIRP and NIRP (i.e. zero and negative interest rate policy regimes), but the pivot by the Federal Reserve (Fed) this summer was quite significant.

This is considering the stark contrast between the Fed and other global central banks last year when the FOMC was tightening, but monetary policy now seems to be converging in light of the recent 75-basis points of Fed rate cuts. Though there is an issue with ZIRP and NIRP, explains Juliette, who explains how the unconventional tools employed by central banks recently can become contractionary – the opposite of what they intended.

This is because consumers are forced to put away more money due to lack of healthy returns historically provided by government bonds that have been popularly used for retirement savings. Moreover, the more you lower rates, then the more you need to lower rates due to its diminishing impact.

--- Produced by Real Vision©

FX TRADING RESOURCES

Whether you are a new or experienced trader, DailyFX has multiple resources available to help you: an indicator for monitoring trader sentiment; quarterly trading forecasts; analytical and educational webinars held daily; trading guides to help you improve trading performance, and even one for those who are new to FX trading.

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

DISCLOSURES

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.