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EUR/USD, USD/CAD and Copper: Falling Yields Shift the Setup

EUR/USD, USD/CAD and Copper: Falling Yields Shift the Setup

By: 
Christopher Lewis

Falling U.S. yields could lift EUR/USD and pressure USD/CAD short term, while bullish copper tests potential support near $6.75.

US2Y Technical Analysis

Daily candlestick chart of the U.S. 2-year Treasury yield pulling back to 4.889% after an uptrend, with rising 10-year yields below.
U.S. 2-year Treasury yield edges lower to 4.889% following a sharp ascent above its 50-day and 200-day EMAs.

The U.S. 2-year yield is pulling back just a bit, and I am watching this because it could have a major influence on how we behave during the session. Yields dropping would give relief for non-U.S. dollar currencies and could give us a little bit of a tailwind with risk appetite.