Forex Trading Quiet Today, As Bond Yields Stagnate Ahead of Treasury Auctions

Today and yesterday’s the market sentiment has been shaky, showing lack of conviction to continue after last Friday’s jobs report. On Monday we did see a continuation of the price action, with US tresury yields and the USD ripping higher, but yesterday the situation camlmed down and today is ven more quiet, with not much on the economim calendar, paart from a couple of FED speakers.

Ten-year bond rates in the United States rose 2.3 basis points to 4.117% in the European session, but that’s very minimal and it followes a  decline yesterday. However, the surge on Friday and Monday was considerable, tal=king the price backl to January’s high, where they met the 200 daily moving average (purple). This moving average have been acting as resistance on the daly chart, so bond yields continue to hover around 4.10-11%.

Zooming out further, we can see that we have a resistance zone around 4.20%, and at the bottom there is some support near 3.80%, sothese are important levels to observe on the daily chart. But, for the time being, the price is sticking somewhere in the middle, without any reason to push to these support and resistance levels, or even beyond. The small increase in bond rates is keeping the dollar stable overall but you can sense the market uncertainty. So far today, all USD pair have been rather stable.

EUR/USD and GBP/USD had a nudge higher earlier today, but they have reached a resistane zone and are not pushign any higher at the moment. In fact, theyu’re giving signs of reversing lower, particularly the Euro which has everything going against it fundamentally at the moment.

Returning to the Treasury market, we have two impending Treasury auctions this week with the first taking place today for 10-year bonds and the other comes tomorrow, which is for the 30-year bonds. Given the paucity of important data releases this week, auctions may drive bond market movements in the coming sessions, so we’re keeping an eye on them.