ECB announcement sees spike in German bunds


The above is the bund price daily chart. Following the release of the ECB press announcement today, bund prices have spiked up and yields fallen. This is on the back of the ECB’s pledge to keep its rates low at least until the summer of 2019. Of interest, is the hinge in the 5-day green EMA, as it now converges on the orange 13-day EMA (red ellipse). If it crosses above than bund price EMAs will be in in a bullish formation. I.e. the green 5-day EMA will be above the orange 13-day EMA, and the orange 13-day EMA will be above the black 34-day EMA. This is likely to have ramifications for the spread between the US 10-yr treasury and the German bund and thus the EURUSD.

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