Hey guys (and girls of course)!!
Another shorter trading week with Easter and a lot of countries celebrating with Bank Holiday on Monday.
Besides that, just take note the UK prime minister, Boris Johnson made a big announcement about the country’s next steps out of lockdown and confirmed that further easing of Covid restrictions for April 12 are “a go”. We saw GBP/USD push into the 1.3900 zone where it hadn’t been since 19th March 2021.
On Tuesday afternoon we saw US 10-year yields at session lows, down 3.7 bps to 1.659%. Importantly, yields were lower than they were before last Friday’s non-farm payrolls report. The failure of rates to move higher on good news is a sign that 1.75% is going to cap this leg of the climb in yields. At the time of writing this (Friday 9th April) the 10 year yields sit at 1.676%. We also had good new from the EU who reportedly may hit vaccination target by the end of June which is much earlier than projected. The memo stated that Germany, France, Italy, and Spain will had sufficient vaccine supplies to immunise at least 57% of their total populations by the end of June – which is somewhat close to “near-virus immunity” within the respective countries.
The target projections laid out by the memo show that by the end of June, the respective countries will have vaccinated % of their population:
- Denmark 79.9%
- Netherlands 64.6%
- Germany 61.0%
- France 58.2%
- Spain 57.4%
- Italy 57.1%
- Croatia 45.3%
- Bulgaria 45.0%
From the US, Predident Biden said there was good news and bad news about the Coronavirus and vaccinations over in the US.
The good news…
- making incredible progress
- more than 75% of over 65s have had a shot
- more than 80% of teachers, school staff and child care workers received at least one Covid-19 shot by the end of March
- US is on track to hit 200m goal in his first 100 days in office
the bad news…
- new variants of the virus are spreading, moving quickly … and cases are going up.
The Dollar Index has been in a steady decline since 31st March 2021 where it peaked at $93.43 with this weeks low sitting at the big number $92.00
The DX is in fact in a weekly downtrend… is this the start of the new phase 1 to the downside. We will wait and see.
From all of us at the Trade & Train team… stay safe and catch you again soon.