Germany said to consider staggered deal on debt
The headlines from Bloomberg read the following:
The EURUSD shot up, but the price has settled back down. The price action intraday still shows a market that is battling as the Greek situation plays out. There really is nothing to hang a hat on for the EURUSD from the shorter term chart expect to say the market is subject to headline/event risk. Liquidity conditions are not great.
So sit tight. Patience.
Meanwhile, over in the bond markets, the German debt reached above 1.0% today but US treasury yields area also moving up. Nevertheless the spread of US to German yields has seen the spread come in from 1.536 basis points a few days ago to 1.4834 today today. Overall, the spreads remain near the middle range for 2015. The market has been using the excuse of the narrowing spread as being EURUSD supportive but that story can change. So be careful. The bond market has gotten more realistically priced, however. Which is probably a good thing.
