Chinese growth was the story overnight, helping raise speculation that 2010 will play out like the bulk of 2009, with the market focused on growing imbalances between east and west, and selling greenbacks to guard against those imbalances. Reflation uber-alles.
A continued strong back-up in US yields has kept dollar losses moderate, however. 10-year notes yield an astounding 3.85%. A month ago we were 3.15%. Spreads over German bunds are back out to 50bp.
If the charts are accurate from over the holidays, it looks like there is some resistance at 1.4435. Solid resistance is at 1.4500.