this is related to the previous idea below... The dollar got strong because of treasury bonds, which have be historically short, started rising. when bonds rise, the market starts viewing it as a risk free, bonds become more valuable and start to rise. When bonds go up, people are less inclined to buy stocks, & when the 10yield is over 1.5%, stocks tends to sell off (strong dollar), and when the yield on the 5yr is over .75%, it does the same. & last week the 10yr touched 1.6% for a moment, and the 5yr shot up as fast as it ever did before. But why are yields rising either bond prices are being cut, so people can buy, (people arent buying now because of the massive stimulus coming). or because people think inflation is coming. (2) which means people would be buying yields that are producing negative yields. or (3) they think the fed will raise rates sooner than expected. but now that stimulus is around the corner, is the sell off over (dollar bull run over).Since the house passed it over the weekend, and the senate can pass it with ease through budget recon, the dollar bullrun might be over soon
(clickable)
Trade active
ok i was expecting that gap to fill so i shorted aud/usd in here .. and once the news is out the way and dollar is looking like it's ready to go (below) .. i am now long aud/usd here . .
BUT NOW is the dollar going to die from here .. let's see
Note
im still agreeing to this bias and plan my thought is that they needed more liquidity or the euro just wasn't strong enough yet. (being that it is 60% of the dxy)
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.