USD/JPY up half a cent
The USD/JPY has been hit by some late selling pressure in New York yesterday and closed the opening gap.
In part that was due to some nervousness in the stock market of the end. The S&P 500 closed down 10 points, but the market got some good news from the earnings from Caterpillar, 3M, General Motors and others. It is contributed to the growth of the S&P 500 futures up 3 points.
The big story is in the bond market, where 10-year yields are up 4 basis points to 2.41%. The 2.40% level has been hailed as one of the main line of resistance, including Bill Gross, who said that a pause would signal the end of the generation bull market in bonds.
I’m not sure of the end of the bond market, but I could easily see a return of 2.60% in the coming weeks and which would support a rally to 118.00.