Yields, Interest Rate Spreads, 10 Currency Pairs

Published fxstreet.com, Front Page

Yield, Interest Rate Spreads and 10 Currency Pairs

The Eonia / Fed funds spread remains again today 0.28 while USD / German 2 year yields currently factors 0.314 and the USD/German 10 year at 1.613. Overall, 1.33 spread.

Japan Call Rates V Fed Fund spreads trade 0.57 , 0.067 as USD / Japan in the 2 year and 0.94 in 10’s. Overall spreads 0.87.

In the UK, Sonia V Fed Funds trade 0.09, USD V UK 0.27 in the 2 year and 0.25 in the 10 year. Overall spread 0.16.

CAD Corra V Fed Funds trades 0.15, 0.14 as USD / CAD in the 2 year and 0.25 in 10’s. Overall spread 0.10.

As 2008 Keynesian stimulus met and defeated Supply Side economics, the end result is found above by a massive power shift as central banks added and subtracted daily money to maintain the free price system under Supply Side practices to full price and market control under Keynes. It explains why the intent focus on central bank policies, speeches and Forward Guidance. Yet the central banks failed to shoot one straight arrow in eight years.

The interesting difference between Keynes this time around and 1930’s – 1971 free float is Keynes was practiced previously under Gold Standards and a fixed price system as Gold was Fixed. A few currency pairs highlighted by vital break points for consideration.

CAD/ZAR remains inside its ranges between 11.50 – 11.32, an 18 pip range vs a 6 pip range yesterday.

EUR/JPY broke a big point at 124.29 to trade at current 122.00.

EUR/CAD remains inside a 1.3919 – 1.4348 range.

EUR/NZD at current 1.6225 rests above next vital break at 1.6222 and ranges inside 1.6222 – 1.6482.

EUR/CHF at 1.0969 also rests just above big break points at 1.0956 and 1.0938. Extreme price pressures are building inside EUR/CHF as a hughe breakout is on the way.

EUR/AUD from current 1.4819 rests comfortably below 1.4922, 1.5135 and 1.5172.

EUR/GBP from 0.7755 is stuck inside 0.7773 above and 0.7739 and 0.7647 below.

USD/CAD from 1.2556 also rests just above vital supports below at 1.2289 and 1.2149.

USD/CHF from 0.9683 currently, above point breaks are located at 0.9766, 0.9865 and below at 0.9296.

USD/JPY ranges remain wide at 104.09 below and 110.32 above.

USD/NOK from current 8.1518 trades just below bitg point break at 8.3431.

Brian Twomey, Inside the Currency Market, btwomey.com

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