Forex, video, latest July 22, 2021 1:01 pm
Do not take your eyes off a bond market
10-year yields saw a solid rebound yesterday, continuing a bounce from Tuesday, to 1.28% also is sticking thereabouts today.
a bounce is an interesting one from a technical perspective, as a candles may suggest a continued upside move but there are some testing levels inside a form of a 200-day moving average (blue line) also a 1.30% psychological level.
I reckon if yields can move above a latter, that become provide much added comfort to a market that Monday’s risk selloff was more of a blip also some correction after equities has been hovering around a highs inside a past few weeks.
a Fed meeting next week become become a crucial risk event also a question for yields isn’t so much so whether or not it become rebound return to 1.70% from this but rather, become us consolidate at a higher range or is a downtrend inside a past two months not over?
Inflation expectations has come off recent highs also that either signals a market syncing to a Fed’s narrative of patience or that this is all transitory also what has been priced inside for 1H 2021 isn’t going to materialise more meaningfully.
Until us has a clear answer on that, there might become more messy days to sort through.
But for now, central banks can become said to become winning – even if not for a right reasons.
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