EmailBond Market Update
The market at 14:47 ET
| 10-Year: +16/32....%.... GNMAs: .... USD/JPY: 80.28.... EUR/USD: 1.3244 |
Moving the Market
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MBA Mortgage Index: Actual -4.5%, prior -1.0% Existing Home Sales: Actual 4.57M, consensus 4.63M, prior 4.61M (revised 4.38M) Treasury auctions $35B 5-yr notes, draws 0.900% |
Yen Sinks to 7.5-Month Low
22-Feb-12 14:47 ET
10-Yr: +16/32..2.009%..
USD/JPY: 80.28..
EUR/USD: 1.3244
Weak Yen: The dollar index has been holding near 79.20 for the entire U.S. session as trade drifts towards the close. EURUSD is +15 pips at 1.3245 despite today’s mostly disappointing Flash Manufacturing and Services PMI data in the Eurozone. However, bulls have been unable to run the pair through 1.33 resistance and that has bears looking to take control. Germany’s Ifo Business Climate will be released early tomorrow. GBPUSD is -100 pips at 1.5675 after today’s Bank of England Monetary Policy Minutes showed a GBP75 bln stimulus was discussed at the last meeting. BoE doves Adam Posen and David Miles were outvoted 7-2 in favor of just a GBP50 bln stimulus, but some members questioned whether or not any stimulus was needed at all. Traders are now watching 1.5650 support very carefully as a breakdown may result in a retest of the January lows. Britain’s BBA Mortgage Approvals and CBI Industrial Order Expectations are both due out tomorrow. USDCHF is -20 pips at .9100 as today’s selling has the pair on track to close at its lowest level since November 14. USDJPY is +60 pips at 80.30 and looks to be on pace for its best close since July 8. The recent JPY10 trln stimulus implemented by the Bank of Japan has sparked a 400+ pip rally over the past three weeks, but it remains too early to say that the pair has indeed reached at least a near-term bottom. AUDUSD is -20 pips at 1.0640 after earlier selling exhausted near 1.06 support. That area will be key in the near-term as a breakdown will likely lead to a retest of 1.04 support that is aided by the pair’s 200-day moving average.
USDCAD is +30 pips at .9995 as today’s buying has run the pair back above its 200-day moving average. A push through the 1.0025 area will be a welcome sign for the bulls and will likely lead to a test of the 1.01 level.
