Yield Curves and Currency Prices
Yield curves can now be drawn and plotted and a trading strategy planned. How this is done depends on the trade strategy, which pair to trade, which market to trade, which side of the yield/bond strategy traders wish to follow, and duration of the trade.
Short-term traders should look at the short end of any single nation yield curve, or two curves if a trade runs into another market under another time frame. Longer-term trades should be monitored specifically in terms of each nation's yield curves. The question should always be the relationship of the spread and its narrowing, widening, or flattening in relationship to bond maturities.
Any yield-curve strategy should account for BBA LIBOR, in-nation LIBOR rates, ...
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