Posted on: 08 June 2016, by: Pepperstone Support, category: Market Review
WTI is testing $50.45 – EM and risk is generally bid on the back of a sharp change in rate cut expectations. Last Fridays NFP has the market believing that the Fed looks to be hold until further notice.
German 5y and 10y yields hit record lows of -0.42% and 0.045% respectively.
There was a healthy dose of short-covering in global fixed income markets with traders rushing to the exits ahead of what is shaping up to be a fairly volatile month in global markets.
USDJPY tracked US yields to the 107.15 area before bouncing. EURUSD was choppy in directionless trade, but upside momentum seems to be building in the pair.
USDMXN was sold heavily near 18.70 with fixed income bid, trading just below 18.40 into the NY close.