The US Dollar tailwind

Blake Morrow Forex Analytix

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.

Author

Blake Morrow

Forex Analytix

Blake Morrow spent most of his professional career as the Chief Currency Strategist for Wizetrade group for 15 years, and then the Senior Currency Strategist for Ally Financial after the acquisition of Tradeking which owned the Wizetrade Group.

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