Session Recap: US Yields hit Dollar while Germany beats 5-0 to Brazil

By FXstreet.com | July 08, 2014 AAA

FXStreet (San Francisco) - No words. Slipping yields and risk aversion are pushing down the USD across the board. Meanwhile, Germany is beating Brazil by 5-0 in a lifetime match.

"Risk aversion was a factor but it’s hard to say it was only a US factor as stocks fell globally ahead of earnings season," comments Adam Button from ForexLive. "It was more of a case of a Treasury rally and traders getting fed up with waiting for a US dollar rally."

On the other hand, "sliding US yields are helping undermine the Greenback," comments Jamie Coleman from FXBeat. "From near 2.70% on Thursday after the US employment report, we've fallen to 2.58% today. That's down an additional 3.5 bp from yesterday's close."

The EUR/USD advanced for second day as the pair is closing above the 200-hour MA level at 1.3605. Currently, EUR/USD is trading at 1.3611, up 0.05% on the day, having posted a daily high at 1.3619 and low at 1.3588.

The hourly FXStreet OB/OS Index is showing neutral conditions, alongside the FXStreet Trend Index which is slightly bullish.

The USD/JPY extended declines to 101.50 amid lower yields. "The post US employment data rally was short lived and for what price shows, not enough to revert yen latest strength," points out Valeria Bednarik from FXStreet. "Risk to the downside in the midterm has increased with this break lower towards 100.70 this year lows."

Currently, USD/JPY is trading at 101.56, down -0.29% on the day, having posted a daily high at 101.92 and low at 101.49. The hourly FXStreet OB/OS Index is showing oversold conditions, alongside the FXStreet Trend Index which is slightly bearish.

Regarding the World Cup match... historic: 6 all-time record beaten in just 30 minutes.

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