Treasuries are mixed with shorter dated coupons rallying while the longer maturities are selling off as some of the recent flatten trend is unwound. There is a lot for the market to absorb in the wake of the hawkish FOMC yesterday, the BoE hike today and the surge in European rates, and the various data. EURUSD rallied to a more than 2-week highs of 1.1359 from 1.1315 following the ECB announcement, which confirmed the beginning of thee end for asset purchases. Gilt yields popped higher, which helped the euro, as Treasury yields remain steady. Following the Fed taper, and prospects for three rate hikes next year, along with the BoE and Norges Bank rate hikes earlier this morning, the ECB continues to look like it is behind the curve on the removal of accommodation front.
Click here to access our Economic Calendar
Stuart Cowell
Head Market Analyst
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distribited without our written permission.
