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USD slides lower on positive risk amidst “optimistic” stimulus talks
After so many weeks of “will they, won’t they?”, markets have taken one word “optimistic” from Democrat House Speaker Nancy Pelosi and run with it. We are risk-on once more. US Treasury yields are breaking higher, with the 10 year yield above 0.80% for the first time since June, whilst this is also accompanied by a “bear steepener” on the yield curve (which is bullish for risk). We have been here before though, and this move is clearly open to potential disappointment. Markets are taking fiscal stimulus as not “if”, but “when” and as just a matter of time now. The US dollar is coming under ... (full story)