Bond Market Calling Fed |

Does the chart below suggest yields have topped for now? A weekly candle that fails to close below the 200-WMA after testing it for the 1st time in nearly 2 years could be a tell.

Bonds have often foretold shifts by the Fed—policy reversals, or hard stops in this case. The US yield curve started flattening 12 months after the end of the 2020 recession. The never began flattening so soon and so deep after the end of a recession. This only highlights the unsustainable and illusory nature of the past 24 months.

A prolonged drop in yields next week could accompany a catch-down by the and with its Tech peer and print their own 10% drawdown at 4300 and 33000 respectively.

Falling yields could be brought about by a sudden turn to the worse on the Russia-Ukraine front. More realistically, it could result from Fed Chair Powell sounding unfazed by the market turmoil on Wednesday’s , as the curve flattens further. Think about it.

meanwhile, could well retest the $30K support level, but the recovery should emerge faster and more “violently” than the March decline of 2021. Finally, and continue to do everything “right” so far.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link

Share on facebook
Share on twitter
Share on linkedin
0 0 votes
Article Rating
Notify of
Inline Feedbacks
View all comments
Would love your thoughts, please comment.x

Get Registered For FREE Forex Training!

Fill In Your Details To Get Registered For FREE Forex Training!

Do You Know About Forex Trading?(Required)
Have you done Forex Trading before?(Required)
Where did you hear about us?(Required)