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Jamie Coleman reports that Moody’s reacted to the deal on tax cuts in the US – they stated that there’s a higher chance of a negative outlook on the American perfect AAA credit rating over the next two years.

US treasury yields are higher once again on this news – ten note yields are at 3.35%, yet the reaction in forex is different – the dollar weakens across the board, with USD/JPY falling to 83.60. Dollar/yen has been highly correlated to US yields. Are we seeing a change?