Short comment
Dollar index has shown downside movement recently.
The index is now in level of 94s.
Ironically, Donald Trump's attitude for trade between United States and the rest of the world, was a momentum for strong USD because USD became the safest currency, taking the status from JPY.
Concern over Mr. Trump was a stimulus for strong USD.
In last week, the administration announced progress of the negotiation between the US and Mexico.
And today, Steven Mnuchin, Secretary of the Treasury, reported another progress about Canadian one.
The progresses had given impact to FI and Currency obviously.
Yield of 10y US T-Note went above 2.88% even though bidding for the 5y security at today ended in strong mometum.
Another point is that the index already back to the level of box which proceeded since June.
Looks like bottom of yield of 10y German government bund is 0.3% level, and it's 0.38% level now.
I believe it'll need too much for German bund to back to normal level, but still think it's possible to touch 0.6% level.
It means the yield has much higher upside than that of 10y US T-Note which couldn't go beyond 3% easily.
Weak movements of yields of the German bunds could lead to increase value of EUR, which is the largest rival of USD.
But it doesn't mean USD would enter the weakest momentum against overall currency.
Lack of US dollar in several EM countries such as South Africa, Turkey, Argentina and Indonesia is still giving huge concerns to the markets.
And I still remain my opinion about USDJPY which is targeting 115.
My first target of dollar index is 92, but the movement wouldn't be that fast.
Dollar index has shown downside movement recently.
The index is now in level of 94s.
Ironically, Donald Trump's attitude for trade between United States and the rest of the world, was a momentum for strong USD because USD became the safest currency, taking the status from JPY.
Concern over Mr. Trump was a stimulus for strong USD.
In last week, the administration announced progress of the negotiation between the US and Mexico.
And today, Steven Mnuchin, Secretary of the Treasury, reported another progress about Canadian one.
The progresses had given impact to FI and Currency obviously.
Yield of 10y US T-Note went above 2.88% even though bidding for the 5y security at today ended in strong mometum.
Another point is that the index already back to the level of box which proceeded since June.
Looks like bottom of yield of 10y German government bund is 0.3% level, and it's 0.38% level now.
I believe it'll need too much for German bund to back to normal level, but still think it's possible to touch 0.6% level.
It means the yield has much higher upside than that of 10y US T-Note which couldn't go beyond 3% easily.
Weak movements of yields of the German bunds could lead to increase value of EUR, which is the largest rival of USD.
But it doesn't mean USD would enter the weakest momentum against overall currency.
Lack of US dollar in several EM countries such as South Africa, Turkey, Argentina and Indonesia is still giving huge concerns to the markets.
And I still remain my opinion about USDJPY which is targeting 115.
My first target of dollar index is 92, but the movement wouldn't be that fast.
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