FREE RAPID SIGNAL SELL NOW AUD/USD Treasury yields rise | Focal Community Group (FXSignals)
FREE RAPID SIGNAL SELL NOW AUD/USD
Treasury yields rise as we had expected, driving the USD back to 2021 highs. Most investors sold the USD shortly after inflation came in higher than expected and could not have been more wrong. The yield on 10-year U.S. Treasury bonds rose nearly 11 basis points (0.11%) (back to 1.55%+). Higher yields are in general negative for the growth sector as they are investment heavy and most of the value is depending on future revenue streams. Banks are benefiting from a steeper yield-curve, which is why we positioned us LONG in Bank of America at NYSE opening. We also expect the USD to further strengthen and trade it against the AUD. A stronger USD has a (negative) impact on commodity prices, as they are usually paid for in USD and are therefore less attractive (more expensive) when purchased in other currencies. Contrary to what the Fed and also US Treasury Secretary Janet Yellen suggested, inflationary pressures have continued to worsen. The pressure on the Fed to curb inflation is growing which increases expectations of quicker normalization of the Fed's monetary policy.
Tip: You can multiply your usual lot size by ~ 1.25 - 1.50 (125% - 150%) trading AUD/USD
Signal delayed by 15 minutes (non-delayed signals in VIP group).
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