Contrary to the expectations of analysts who from every iron urged gullible citizens to get rid of the “green paper no one needs”, the US dollar suddenly began to strengthen. What caused the growth? Maybe the news about positive changes in the labor market contributed to this? Perhaps, but I believe that in fact, the dollar began to be bought like hot cakes due to the rise in the yields of US Treasuries.
According to FactSet calculations, the Treasury yield exceeded the base rate of the S&P 500 dividend yield.
Therefore, it is quite logical to look at the actions of investors who yesterday began to shift money from the overheated stock market into US bonds, which have the same yield and at the same time they are considered a safe asset.
The increased demand for the dollar also affected the quotes of the major currency pairs. Thanks to this, my last forecast for the pound was successfully worked out and the sell deal not only neutralized the previously received losses, but also brought the same amount of profit.
Successful bidding completion this week, everyone, and have a great weekend!