EUR/USD has stabilized above 1.1900 after running to a high of 1.1983 in the wake of the disappointing GDP headline. Offers are stacked up to the 1.1950 level but then stops begin to kick-in. Interest rate differentials have widened back in favor of the dollar this morning, with the 10 year spread now at 35 bp, up 7 bp from yesterday, which could help contain rallies in EUR/USD. These are the highest levels in the spread, in favor of the USD, since August 27th last year. WE HAVE DOJI'S ACROSS THE MAJORS, BUY THOSE PULLBACKS Cable has overcome resistance in the 1.7725 region to extend its US Q1 GDP-assisted rebound from the 2004 low of 1.7582 plumbed late in the London morning.1.7766 represents the session high-to-date, with 1.7780 providing a technical barrier above. 1.7780 is a 50% Fibo retracement point of the fall from yesterday"s high of 1.7970/75 to 1.7582. Support is now pegged at 1.7725/30, with 1.7700, 1.7675, 1.7600, 1.7582 and 1.7550 below.
Interest rate differentials have widened back in favor of the dollar this morning, with the 10 year spread now at 35 bp, up 7 bp from yesterday, which could help contain rallies in EUR/USD. These are the highest levels in the spread, in favor of the USD, since August 27th last year. What are you charting to get this spread, is it fed funds rate future vs something? Thanks Funster