Confirming you are not from the U.S. or the Philippines

By giving this statement, I explicitly declare and confirm that:
  • I am not a U.S. citizen or resident
  • I am not a resident of the Philippines
  • I do not directly or indirectly own more than 10% of shares/voting rights/interest of the U.S. residents and/or do not control U.S. citizens or residents by other means
  • I am not under the direct or indirect ownership of more than 10% of shares/voting rights/interest and/or under the control of U.S. citizen or resident exercised by other means
  • I am not affiliated with U.S. citizens or residents in terms of Section 1504(a) of FATCA
  • I am aware of my liability for making a false declaration.
For the purposes of this statement, all U.S. dependent countries and territories are equalled to the main territory of the USA. I accept full responsibility for the accuracy of this declaration and commit to personally address and resolve any claims or issues that may arise from a breach of this statement.
We are dedicated to your privacy and the security of your personal information. We only collect emails to provide special offers and important information about our products and services. By submitting your email address, you agree to receive such letters from us. If you want to unsubscribe or have any questions or concerns, write to our Customer Support.
Octa trading broker
Open trading account
Back

Dollar index flat lined in Asia, focus on the treasury yield curve

Having recovered from the low of 94.36 on Friday, the dollar index (DXY) is trading flatlined in Asia around 94.55 levels.

The index struggled to gain altitude beyond 95.00 early last week, finally making way for a decline on Thursday and Friday. Greenback's losses could be attributed to the yield curve flattening (i.e. long duration yields drop more than short duration yields).

The difference or the spread between the US 10-year yield and the 2-year yield fell to 67.8 basis points on Nov. 7; the lowest level since Oct. 31, 2007. The narrowing spread (flatter yield curve) indicates concerns about low inflation and low prospects of faster Fed policy tightening. Thus, USD weakens on yield curve flattening and vice versa.

The unwinding of the yield curve flattening trades on Friday lifted the spread to 74 basis points on Friday and helped the DXY recovery slightly from the low of 94.36. Given the light data calendar, the DXY remains at the mercy of the changes in the treasury yield curve and US tax reform news.

Dollar index outlook

Reuters Buzz takes note of the key technical levels on the DXY-

  • 94.26, prior Oct high & rising 20 DMA, now @ 94.30 a base offshore
  • Pivotal support - close below 94.25 would target 93.56, 38.2% Sep/Oct rise
  • Friday's 94.65 high & 04.63.69 % & 10 DMAs initial resistance

 

BoJ to maintain easy policy even if Govt declares deflation exit – Goldman Sachs

In his latest note on the BoJ’s monetary policy outlook, Goldman Sachs Japan Chief Economist explained that the BoJ needs to maintain its ultra-loose
Read more Previous

ECB’s Lane: ‘QE extension was needed to hit inflation target over medium-term

Reuters reports the comments delivered by the ECB Governing Council member and Irish Central Bank Governor Philip Lane over the weekend, during an exc
Read more Next