Mike “Mish” Shedlock's
Sitka Pacific Capital Management,Llc
For the first time ever, Greek 10-year bond yields dipped below 2%.
US Bond Yields vs Europe
- US: 2.05%
- Greece: 2.01%
- Italy: 1.50%
- UK: 0.68%
- Portugal: 0.43%
- Spain: 0.36%
- France: -0.11%
- Germany: -0.37%
- Switzerland: -0.67%
Figures from Trading Economics.
Shock and Awe?
Global Currency Wars On
In case you missed the general idea, global currency wars (not so cleverly disguised as interest rate policy) are hugely underway.
And please note that the ECB is following Japan's model and it did not do Japan any good.
Is the US Supposed to Follow?
For discussion of the resultant bubbles, please see Fed's Asymmetric Bubble-Blowing Policy in Pictures.
Also note Shock and Awe Needed to Un-Invert the Yield Curve: Half-Point Cut Not Enough.
This material is based upon information that Sitka Pacific Capital Management considers reliable and endeavors to keep current, Sitka Pacific Capital Management does not assure that this material is accurate, current or complete, and it should not be relied upon as such.
Latest Forex Analysis
Editors’ Picks
AUD/USD stays under pressure around 0.6830 while beginning the NFP day
AUD/USD declines to 0.6830 during the initial Friday morning in Asia. The quote stretches losses made on Thursday as the second-tier Aussie data becomes the latest disappointment.
USD/JPY steady at 200-DMA ahead of critical US NFP data
Steady below the 200-day moving average, Yen fell from 108.97 to 108.66 overnight as positive trade deal headlines flowed through the news wires and helped US stocks eke out further gains. Risk appetite was solid into the close on Wall Street overnight.
US Non-Farm Payrolls November Preview: Labor market continues to defy concerns
Non-farm payrolls are predicted to rise 180,000 in Nov following Oct’s 128,000 increase. The unemployment rate is expected to be unchanged at 3.6%. Hourly earnings will gain 0.3% in Nov after October’s 0.2% increase and annual earnings will be stable at 3.0%.
Gold: Modestly changed to $1475 as markets turn cautious ahead of US NFP
Gold fails to extend the previous day’s recovery while trading near $1475/76 amid Friday’s Asian session. That said, the yellow metal registers failures to close beyond 50-day EMA for the third consecutive day.
GBP/USD: 1.3180 holds the key to further upside
GBP/USD traders modestly changed around 1.3160 by the press time of early Asian session on Friday. That said, overbought conditions of the 14-day Relative Strength Index (RSI) and the recent stop in north-run make buyers doubtful.