Turnaround Tuesday

The equity markets are very quiet this morning in comparison to what has happened the last few days. I don’t think we will see much today with Janet Yellen speaking Wednesday and Thursday in front of The House and Senate.

The Currency markets however are very active today. The dollar index as of 11am is down 0.67 to 95.88. The Euro is strengthening vs USD, up over 0.01 vs the EURO to 1.131. The Dollar is falling against the Yen by 1.08 to 114.76. It continues to astonish me that this is happening. The Euro and Yen are in the midst of negative rates and large QE programs. The dollar should be stable if not stronger vs these currencies. Again, I believe this is the currency market telling you higher rates are not in the future for the US.

The Ten Year Treasury is also down about another 1bps today to 1.72%. Again, more confirmation that lower rates are coming.

The testimony will be closely watch by investors over the next few days. It will most likely set the tone for future equity market movements. Let’s see how the rest of the day unfolds.

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