Globex and the Currency Bond/Yield Interplay
Currency pairs once shared the bond price/yield connection between each other, but the historic connection changed with the introduction of Globex in 1992 by the CME. It's a matter of semantics.
For example, when it's said the U.S. dollar follows a yield or bond price in another nation, the meaning is actually tied to the Dow or Standard & Poor's (S&P) futures price. The semantics changed with the introduction of Globex.
Globex is an electronic trading system that allows CME products to be traded after normal U.S. market hours close. Globex allowed world traders to be connected, trade other markets, and monitor trades from market to market around the world. More importantly, it allowed the U.S. dollar ...
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