Cross markets: An overlay of U.S. 2Y yields in red, USDJPY and blue and Dow Future in green. Before we make quick conclusions about stocks falling and the JPY rallying this morning, let us not forget that U.S. yields are more important that equities in indicating where USDJPY (and cross JPY) is likely to trend.
The highlighted area shows the rise in U.S. yields and USDJPY and the simultaneous fall in the Dow into the lows in March. While we have seen a fall in equities now at the start of this week, it is very possibly to see stocks trade lower and USDJPY (and cross JPY) move higher if we see stability / gains in U.S. yields…
Yields, Stocks and USDJPY – Recent price actions suggests we should be careful
Linear Mode
