European interest rates fall sharply, U.S. interest rates rise "Shima Rikio's Real-World Real Trades" 10/27

European interest rates fall sharply, US rates rise

Publish date: 2017/10/27 05:32

European rates have fallen sharply and US rates have risen. As I mentioned in the previous dispatch, Spain is -0.111% (1.521%), Germany -0.067% (0.412%), France -0.06% (0.819%), Italy -0.092% (1.932%). The decline in Spain's rates is notable. There seems to be a sense of relief due to the continuation of QE.

Because actual purchase money is decreasing, I think it can be regarded as tapering, but President Draghi emphasizes that "a reduction is not tapering." It probably means that if the economy changes, they will revert the amount to its previous level.

Policy will continue until September 2018. That means there will be no policy changes for nearly a year from now. From a monetary policy standpoint, buying euros feels a bit stale as a factor. Until Europe’s and Germany’s current-account surplus issues come into the spotlight, this may be a period of some long-position adjustment.

1.1660 has broken, so on the chart it's a head and shoulders pattern. From 1.15, it will try to go lower; what do you think?

Microsoft, Alphabet (Google's parent company), and Amazon have announced earnings, and all results are good. Microsoft up 1.7%, Alphabet up 4%, Amazon up more than 7%. It feels like the US is strong.

Positions are EURUSD short, USDJPY long, NZDUSD short, but AUD is also falling, so AUDNZD's performance isn't great. I plan to close this currency pair for now.

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