Vital breaks next week: 1 month to 10 year
1M = 5.7640
3M = 5.3820
6M = 5.4080
1Y = 5.1645
2Y = 4.4275
3Y = 4.0970
5Y = 3.8315
7Y = 3.7935
10Y = 1.9230.
Average of the Yield curve 3.8435 at the 5 year yield. Exclude 10 year, average = 4.7788 or between the 1 and 2 year yield. All yield rates are higher than the 10 year. Normal = All rates lower than 10 year.
10 minus 2 year = minus 2.50 and 10 minus 3 month = minus 3.45.
Brian Twomey
EUR/USD 1.0753 Vs DXY 103.95
1.0768 Vs 103.80
1.0798 Vs 103.51
1.0872 Vs 1.0276
1.0947 Vs 102.02
1.1021 Vs 101.27
Brian Twomey
Yesterday’s interest rates are used for today’s trade. Today’s interest rates are used for tomorrow’s trades. All interest rates are found on central banks websites and freely offered and displayed prominently.
Here’s the laugh. People pay good money to Bloomberg, Reuters and others for today’s interest rates. Canada’s Corra rate for example releases at 9:00 am EST but all required is wait till 11:00 am EST or 12:00 Noon for today’s interest rates for tomorrow’s trades. Why pay money for rates offered for free.
Understand this point. Every market price on the planet to include FX, stocks, Stock indices, gold, metals and everything else moves by an interest rate. Trust these words. Hedge funds don’t understand this point nor today’s currency analysts. The world of trading lacks understanding to how markets operate. They will never have understanding unless they play around with the essential numbers.
Next. Yesterday’s BOJ to today’s USD/JPY and JPY/USD trades.
USD/JPY 139.67
131.42 and 144.04 and 148.42
139.80 and 139.53
127.51 and 146.32, 152.97
JPY/USD
0.0071597 = 139.67 as 1 divide 0.0071597
0.0067372 and 0.0076086
0.0071668 and 0.0071525
0.0065368 and 0.0078419
JPY/USD 7 numbers. USD/JPY must have corresponding numbers for accuracy. USD/JPY’s big break for lower is located at 136.34. Wrong. The actual number is 136.3432 then JPY/USD as the same number = 0.0073344.
See 127.51 = 0.0065368 while 148.42 = 0.0076086. USD/JPY requires a lower BOJ interest rate to move lower.
Brian Twomey
BRIAN TWOMEY ON TRADING 