The US Dollar tailwind
|Following the CPI release today, the 10yr notes sold off and broke back below the 200dma. The risk near term is that since the 10yr broke lower, it looks like the next move back be back to the 109'13' level support. The rise in yields (inverse of the ZN contract) would suggest US 10y yields may continue to rally which could provide a nice tailwind for the US Dollar squeeze we are witnessing now.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.