US CPI Puts Bond Yields in Bearish Mode
2023.11.15 06:28
So the US came down more than expected yesterday at 3.2% y/y, and as a result the USD fell sharply with US yeilds, while stocks and metals are on the rise. For now, this seems to be a very important data as it causes also a very important key breakdown on USD index and US yeilds.
Looking at the US yeilds, we have five waves down, so it means that top is in place, and suggests that speculators believe that FED is done with hiking. But keep in mind that if energy (crude for example) will turn back up this month then again inflation expectations and rate policy may change and influence investors’ moods.
So tracking in the next few weeks is crucial. Also, keep in mind that a pullback on US yields can show up soon, and it can force some dollar shorts from yesterday to liquidate. But that’s yet to be seen, as I realize that pullbacks may not be that deep after all.
But for now, at least the intraday direction is clear and bearish for the DXY, where we may see a continuation to around 103-103.40 where we see 50 and 100 Weekly MA.
