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.
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.
- Kyle Bass and the HKD story - July 10, 2020
- What’s it going to take to break USDJPY out of its box? - July 7, 2020
- Here’s how the ForexFlow traders get ready to trade today’s US NFP - July 2, 2020