USD rally continues, Yields push lower as QE enters day two – TDS

FXStreet (Barcelona) - Jacqui Douglas, Senior Global Strategist at TD Securities, summarizes the market performance, noting that the second day of QE has led yields to continue to push lower while USD continues its shine particularly with EUR and AUD.

Key Quotes

“With not a lot of new news this morning, markets seemed to have decided that the trend is their friend, as FX markets have seen the USD continue to rally while the EUR and AUD have both hit new lows with EURUSD trading around 1.0750 and AUDUSD seeing a low today of 0.7604.”

“Equity markets continue to slide, with European markets down around –0.5% on the day, and S&P futures testing yesterday’s lows, and fixed income markets are seeing European yields push lower again as the ECB’s QE program continues into day 2., and bund yields hit a fresh all-time low of just below 0.28%.”

“In the commodities space, WTI crude is trading below $50bbl, and Brent crude is down 1.5% to be trading around $57.60bbl, its lowest level in close to a month.”

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