DislikedBoth Retail Sales came out negative and yet the USD is still Strong. The USD must still be stronger than what people think.Ignored
Disliked{quote} Nope yields are strong. I read it this morning but I disregarded it thinking UK employment would dictate market, but the numbers came out in line. The next fundamental the big boys took was Yields which has had massive impact on dollar recently. {image}Ignored
- Yields can act as a fundamental guide in telling us what is going on in the markets
- High yields determine the expectation investors have on the economy, right now we are seeing yields increase to high levels which means that investors have high expectation for either inflation of interest rates to increase in the US
- Now there has been talk, circulating the news outlets about flat yield curves and their prediction power in predicting a recession which is true however this will not deter the fed from increasing interest rates because if there is going to be an economic downturn the fed are going to want to have interest rates as a tool to use in the economy, so it makes sense for them to increase it as much as they can whilst they can and then decrease it when it is needed
So based off this you can see how the T-10 bonds can be used to gauge the sentiment/risk within the markets surrounding the US Dollar.
To gauge risk in the markets further I will be using as a quick snapshot guide:
- Stock indices
- XAU, EUR, JPY, GBP
- 10 T-Bonds
- Vix
Source:
https://www.fxtaa.com/en/risk-on-risk-off-forex-sentiment-how-to-understand-and-use/
https://www.fxtaa.com/en/how-to-use-the-yield-curve-of-bonds/
To Pipccess and Beyond
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