US Bond Yields Continued To Rise Violently

US bond yields have continued to rise sharply, 2-year yields are up 20bp since Christmas and are now trading around 1.15% after being close to 0.6% in early December.

This has led to a massive repricing of Fed policy with close to 100bp of hikes priced during all of 2010 with the first hike starting around summer.

US 10-year yields have also risen a little, but not as much as the 2-year segment.

Hence the curve has flattened from the record high levels reached around Christmas.

ForexGen Strategies Are The Best Way To Make Profit From FX Market

Foreign exchange strategies are essential for a fx trader to profit from the market. FX trading strategies make a trader more sophisticated and confident by helping him in making right calculations about the market.

There are lots of forex trading strategies followed by forex traders. They can be broadly classified in to two type of strategies are profit maximizing strategies and risk minimizing strategies. The strategy differs with individuals as each trader has unique needs and has unique trading abilities.

A trader must design a forex trading strategy according to many factors such as his or her initial investment, account size, trading ability, risk tolerance, currency pairs trading, geographical limitations/advantages, the broker to which he is affiliated, the trading system he/she uses, the profit goal (short-term profit or long-term profit), etc.

The most followed forex profit maximizing strategy is the leverage. Leverage allows forex traders to trade with more funds than in his or her account.

The leverages are provided by the forex brokers to their clients. The usual leverage is 100:1 – i.e., for $1 in account the trader can borrow $100 from his broker.

Day traders get much more leverage than other traders and the ratio leverage differ with brokers and also with the account minimum, type of contract trading etc.

Euro/US Dollar Testing Higher In Consolidation Range

Euro/US Dollar (1.4403) is up overnight towards the Head of its holiday trading range.

The daily slow stochastics are oversold but turning higher, suggesting the potential for an upside move.

Technical resistance lies at 1.4458 (Dec29 high) and 1.45 (psychological).

Support for EUR/USD lies at 1.4218 (Dec22 low), 1.4069 (38.2% Fibonacci retracement of Oct’08 to Nov rally), 1.4046 (Aug17 low), and 1.4000 (psychological).

EUR/USD’s short-term correlations with other assets have all fallen in recent sessions, although the S&P500 remains significant, The decline in cross asset correlation stems from credit concerns weighing on the currency.