The Fed and ECB monetary policies tend to converge near the peak of the cycle.

US vs. German yield spread is unceasingly narrowing.

It's an important market signal.

Similar breakdowns from major support lines also occurred right in 2000 & 2007.

This time happened in May.

The Fed and ECB monetary policies tend to converge near the peak of the cycle. pic.twitter.com/TwmvIZ8wUe

— Otavio (Tavi) Costa (@TaviCosta) October 14, 2019