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Apr 17 - 08:55 PM

EUR/USD - Steady, After Bouncing As Yield Spreads Tightened

By Andrew M Spencer  —  Apr 17 - 07:40 PM
  • Steady after closing up 0.5% as yield spreads tightened, USD slipped

  • Yield spreads tightened, 10yr bund off 1bp, 10yr UST -7bp 4.585%

  • June ECB cut likely, but there are divergent views on what will follow

  • ECB's Vasle sees rates 'much closer' to 3% at year-end from the current 4%

  • Charts - mixed daily momentum studies, 21-day Bollinger bands head lower

  • 5, 10, and 21-day moving averages fall - the daily charts remain bearish

  • Close above the prior Feb 1.0695 base would suggest a base is in place

  • 0.786 of the October-December rise proved resilient support this week

  • 1.0650 909mln and 1.0700 910mln are the close strikes for April 18th

For more click on FXBUZ

Source:
Refinitiv IFR Research/Market Commentary

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