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Treasury Rates Up Dollar Demand

Posted by Joseph Trevisani on May 22, 2013 1:20:00 PM

Despite Fed Chairman Ben Bernanke's assurance that the central bank will not withdraw its quantitative easing support for the economy until the recovery is self-sustaining, currency markets are taking their cues from higher Treasury rates with the 10 year bond now trading above 2.00% for the first time since March 15th. 

The euro has touched 1.2842 just above yesterday's low of 1.2840, still half a figure from the May low on the 17th of 1.2797. It reached 1.3001 in Europe.

Initial support at 1.2800 ahead of the six week low (1.2746, 4/4) should be considerable because, except for the brief period from 3/27 to 4/4, euro has not been below 1.2800 since November 21st last year. Further support is at 1.2746, the April low and 1.2662 the November 13th bottom.

Joseph Trevisani

Chief Market Strategist

WorldWideMarkets

 

Charts: Bloomberg

ScreenHunter 1194 May. 22 13.52

ScreenHunter 1195 May. 22 13.54

ScreenHunter 1196 May. 22 13.56

 

 

 

 

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