Dollar firms further, while bund breaks range

10 year bund CFD, for first time traded above 155 range high in last 20 days. Bund 10 year yield is now trading at range low of 0.52% and German Yield curve have now shifted lower, with 5 year now hovering very close to negative rates.

With vigilantes giving up for the time being, frontloading by European Central bank might push yields lower once again. However this time around it won't be one way ride and yields will find it difficult to reach prior levels as more traders would like to jump into historic short trades, who might have missed the ride last time around.

Euro might lose rapidly and break the previous low around 1.05, if yields resume their downtrend once more.

Dollar after consolidating throughout Asian and early European session have now been able to push higher against all of its counterparts.

Dollar index is currently trading at 97.68, up 0.47% today. Expect further rise in dollar as New York opens for trading.