Markets: Fixed Income

On Wednesday, US equities declined on rising concerns about the future of GM and increasing fears that the sharp rise in longer-term US yields would choke the economic recovery hopes.

Morning all. Hope you are well. Nobody mention the football, unless you are Spanish of course. Changed the charts, hope they look better. I think so.

The dollar fell sharply on Monday, tumbling to its lowest so far this year against a basket of currencies and the euro as optimism that the global economy is on the road to recovery continued to boost riskier assets.

With the doomsday scenario apparently off the table, prospects for recovery have helped fuel the resurgence in stocks and in some commodity prices. The first wave of the Treasury's unprecedented debt sales have been absorbed relatively smoothly, though the US dollar has weakened substantially on concerns about the mounting government debt burden.

Crude oil rose after Goldman Sachs Group Inc. said prices may reach $85 by the end of the year and extend gains in 2010 as demand recovers and supplies shrink.

Neutral Hourly Consolidation is seen as Price shows a Lock between the 1.4164 Daily pivot acting as Dynamic Support, and the 1.4230 Dynamic Resistance.
Slight RSI Readings and Slope at “49” look to subtle Bearish ness, as Price cutting through the Hourly 20MSA and Daily Pivot sees 1.4126 Dynamic Support in the Immediate-Term.

The updated June ECB staff forecasts came in mildly on the dovish side, and imply that the ECB does not see a return to positive growth before mid-2010, with inflation undershooting price stability throughout the forecast horizon.

Pair downside pressure sends it to test the ascendant trend line around 1.3945, where the pair quickly rebound to the upside. With indicators pointing for further loses and price under 20 SMA and 200 EMA in the hourly,