Free Trial
AUSSIE BONDS

Twist Flattening Maintained, Futures Off Lows

US TSYS

Bear Flattening Consolidated

US TSY OPTIONS

Recap: TYX2 110.00/114.00 Strangle Blocked

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

Recent Upside US CPI Surprises Haven't Seen Much USD Follow Through

USD

The DXY has drifted lower since the start of the week. We sit a little below 106.30 currently, which is slightly weaker than what 2yr yield differentials with the rest of the G3 imply, see the first chart below. To be sure though, the yield differential has only nudged up a touch over this period after last week's strong gains (+20bps). The market is clearly awaiting this week's key event risk in terms of tonight's US CPI print.

Fig 1: DXY Versus The 2yr Yield Differential

Keep reading...Show less
367 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.

The DXY has drifted lower since the start of the week. We sit a little below 106.30 currently, which is slightly weaker than what 2yr yield differentials with the rest of the G3 imply, see the first chart below. To be sure though, the yield differential has only nudged up a touch over this period after last week's strong gains (+20bps). The market is clearly awaiting this week's key event risk in terms of tonight's US CPI print.

Fig 1: DXY Versus The 2yr Yield Differential

Keep reading...Show less