the usd and the 3% break

The USD rode the coattails of higher U.S. yields and a reduction in the USD’s geopolitical risk premium.


A calmer mood as far as geopolitical risk goes, has taken hold.

The USD is showing strength as Friday’s U.S. GDP data is highly anticipated. If U.S. economic strength heightens in the wake of slowing growth in China and Europe, the dollar will gain more fuel for the move higher.

The bond markets are within the critical technical and psychological 3% ten-year level. With oil going up and tax reform factors, rates could reprice higher to 3.25% (10 UST).

Higher inflation is a consideration.

More than likely, an increase in rotation out of equities into bond markets could accelerate on a 3% break.

Watch oil, gold, and the USD.

Published by mikebertelsen

Global market, trade, and financial news. I keep up to date with what I assess is important.

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