Although we got the initial moves yesterday the yanks have a had a night to sleep on it and so today will be the better indicator on how we go forward. Keep an eye on treasury yields which jumped, particularly at the short end (obviously), but 10 years are still holding below the 2.80% mark. A move above in US trading is likely to underpin the buck and push it north on another leg.
US 10 year yields 20 03 2014
Stocks were marked lower yesterday and futures are already showing a loss of 11 points on the S&P and if we see a big slide that could put some pressure on the dollar. We’ve got some decent data out today so we need to watch the reactions carefully.
As with most volatile event moves it’s about watching for confirmation or rejection and reaction,and this could be the first real test of the ones we’ve seen so far.
