The declines in the USD are being whittled away as yields move back higher.
The US 2 year auction was dismal with little in the way of domestic or international demand.
The Jackson Hole Symposium may be weighing on the minds of investors. Sale of 2 year notes are generally not a problem, even though inflation is well above the nominal rate (but still better than European equivalents).
Looking at the yield curve:
- 2 year 3.31%, down 0.6 bps. The low yield was at 3.232%
- 5 year 3.184%, +2.5 bps. The low yield was at 3.097%
- 10 year 3.054%, +3.6 bps. The low yield was at 2.983%.
- 30 year 3.253%, +2.6 bps. The low yield was at 3.202%
In the US stock market, the Dow is the weakest performer but there is some modest buying in the Nasdaq index. The Dow is down -150 points or -0.49%. The Nasdaq is up 0.23%. in between is the S&P which is down -0.11%.
Looking at the forex, the USD has given up the weakest of the majors to the CHF (it is neck and neck).
- The greenback is also back near the 50% midpoint of the range for the day vs the EUR.
- The USDJPY is back above the 100 hour MA at 136.432 and looks back toward resistance in the 136.91 to 137.15 area
- The GBPUSD moved close to the 100 hour MA but found early sellers. THe pair is moving back toward the 1.1802 to 1.1806 support area.
- The USDCHF has moved back toward the broken 100 day MA after bouncing off a swing area support target.
This article was originally published by Forexlive.com. Read the original article here.