the reason behind the usd spike
Updated
thursday last week there happened a strong sell-off in the bond market.
this caused to spike the usd significantly. most forex traders were surprised by that move. a further sell-off in bond market is to be expected, if the Fed announces to start decreasing the back-buying of bonds.
such a happening was probably started to be priced in by some market makers. never the less, the fed is still purchasing bonds in largerly amounts, while the balance sheets keeps growing exponentially.
we can expect the uptrend in bonds to continue and consider this as intermediate consolidation, caused by some nervous market makers who pulled out early.
I am expecting bonds to revisit previous high and to trade back into the previous uptrend.
But we are in a critical moment, markiet could continue to sell-off, and trigger a even bigger move, so be always aware and prepared for all possibilities of scenarios and back-up with an active and well placed - not to obvious - stop loss.
this caused to spike the usd significantly. most forex traders were surprised by that move. a further sell-off in bond market is to be expected, if the Fed announces to start decreasing the back-buying of bonds.
such a happening was probably started to be priced in by some market makers. never the less, the fed is still purchasing bonds in largerly amounts, while the balance sheets keeps growing exponentially.
we can expect the uptrend in bonds to continue and consider this as intermediate consolidation, caused by some nervous market makers who pulled out early.
I am expecting bonds to revisit previous high and to trade back into the previous uptrend.
But we are in a critical moment, markiet could continue to sell-off, and trigger a even bigger move, so be always aware and prepared for all possibilities of scenarios and back-up with an active and well placed - not to obvious - stop loss.
Note
target for a current long exposure in 10y-T-Notes
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.