Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Bond Breaks Out, CAD Data Next

Published 05/18/2018, 06:23 AM
Updated 07/09/2023, 06:31 AM

The bond market continues to break down as US 30-Year yields broke a major resistance level Thursday. Sterling was the top performer after some Brexit related news denials and confirmations, while the yen lagged. Key Canada CPI and retail sales data are due later today. 1 CAD Premium trade remains open.

USDCAD Daily & Weekly Chart

The US 30-year yield has tried to break above 3.25% at least once in each of the past three years and consistently failed. That level also represents a long-term technical downtrend since the 1980s. On Thursday, the yield touched at high of 3.2545% compared to the 2015 high of 3.2546%. A break might open up a test of the 2014 highs near 4% and could signal a monumental shift in markets.

USD/JPY may already be signaling what will happen next. It rose for the fourth day on Thursday and posted the second close above the 200-day moving average. The US dollar was also lent some support from the economic calendar with the Philly Fed hitting 34.4 vs 21.0 expected.

EUR/USD drops below 1.1800 after Italy's 5-Star Movement and far-right League published their joint government program, promising an escalation in govt spending that will re-awaken tensions with the European Union's budget criteria.

GBP/USD rose by a full cent to as high as 1.3580 in early Thursday on reports that the UK will stay in the EU Customs Union beyond 2021. The currency later fell after the reports were denied. Finally, sterling stabilized when the UK announced it would remain tied to EU customs union until the Irish border question is solved.

Later today, a critical set of datapoints from Canada is due as the final installments of top tier data before the Bank of Canada decision at month-end. CPI and retail sales are out at 8:30 EST, 12:30 GMT, 13:30 BST.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.