FxPro says a slide below $84,000 would hand control to sellers and put $80,000 in play. Minutes from the Fed's last meeting come out Wednesday.
The yield spread between French 10-year OATS and German 10-year Bunds — colloquially known as “Le Spread” — has narrowed more than 10 basis points on Tuesday to 125 basis points. Just days ago, the spread had spiked to 160 basis points, suggesting another EU debt crisis might be at hand.
Leading in the presidential polls, Marine Le Pen proposed a plan to narrow France’s government budget deficit to 3.7% of GDP next year and 2.2% by 2032 — both well below the targeted 5%.
In absolute terms, the yield on French 10-year paper is down 13 basis points to 4.73%, while German yields are lower by 2 basis points.
“Note that this is a shadow budget, so in effect what she would propose if her party was in power,” said UBS’s Nana Antiedu. “Assuming Le Pen's party were to win the 2027 presidential election and go through the legal process of changing the budget, a deficit of 3% by 2032 is quite ambitious, and would require her to gain agreement from the other parties.”
Tech stocks continue to set records, with Invesco QQQ rising another 0.5% to an all-time high of $760. Nvidia · also reached a record $241 per share in premarket trading on Tuesday.
A modest retreat in bond yields, the dollar and oil prices is supporting risk appetite.
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