Forex Trading

US dollar, Treasury yields trade higher on strong Retail Sales


10YR Treasury yields hit 4.6%

The yield on US 10-Year Treasuries has climbed to 4.6%, a significant rise from below 4.0% at the beginning of the year. This increase, fueled by strong US data, suggests growing investor confidence in the economy, impacting forex trading as higher yields often strengthen the currency.

2YR Treasury yields near 5.0%

Short-term US interest rates, particularly the 2-Year Treasury yield, are now nearing 5.0%. This rally, suggesting expectations of fewer rate cuts by the Federal Reserve, reflects market perceptions of continued economic strength and inflation concerns.

Could the Fed hike interest rates again?

With Fed Funds futures from the CME now showing a 12.2% probability of unchanged interest rates in 2024, speculation grows about the Federal Reserve’s next moves. While rate cuts have been the expectation since last fall, could another hike be on the table with continued US outperformance? Such possibilities have widespread implications for forex traders, who must consider potential rate hikes in their strategic planning.



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