The USD gained as the long yields, Brent oil prices declined. The "critical levels" are still up for a test - be careful to position either way until then. The US Q1 GDP revision key this week - a positive surprise? Last week I pointed out the positive correlation between the long (also, US Treasury) yields and the EURUSD. But what about the rate spreads? In fact, the very short term rate spreads are now at, or even below, the levels where EURUSD bounced up in April. It’s the longer rates that moved up! So the curves steepened. What does it mean? The steepening of the German curve lately – larger than that of the US’ ... (full story)