USD is feeling some heat but bonds could be behind it

EURUSD has spiked to 1.1635 as the dollar has weakened vs JPY and CHF. The folks at Livesquawk have noted a big bund trade going though of some 10k contracts which could be a reason why the euro has jumped and we have a knock on in the dollar. There’s also weakness in stocks which could be getting jumpy after the Nikkei moves overnight.

There’s no other headlines behind the moves so it looks like we’re just following the flows.

FX pairs 15m chart

FX pairs 15m chart

I was long USDCAD from 1.2727 down to 1.2701, and I originally had a stop in at 1.2680 but I’ve thrown the towel in on this break of 1.2700 as I really don’t like the look of these moves.

Ryan Littlestone

Psychedelic chartist extraordinaire. Have your shades ready.
Philosophy: “Don’t be a Dick for a tick”

Read how Ryan got into trading here
Ryan Littlestone

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