US yield spreads push relentlessly in the USD’s favour - Westpac

Ross J Burland FXStreet

Analysts at Westpac explained that yield spreads continue to push relentlessly in the USD’s favour.

Key Quotes:

"At +206bp the 2yr DXY weighted spread is at its most supportive levels since 2006. Admittedly the USD has a stronger relationship with long-term bond spreads but they are moving just as strongly in the USD’s favour too.

Against that, the USD’s responsiveness to yield spreads shifts around a lot over time. And, while the USD’s responsiveness to firming yield spreads is very low at the moment it has been even lower in the past."

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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