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Market Wire Update: The Push-Me Pull-You Usd

The Push-Me Pull-You Usd

The global equity markets have held higher in trade on Monday, backed by strong oil ($79) and commodity trade. The reason that the Long equity and oil/Short Usd correlation is not in play is due to the fact that U.S. Treasury yields (dollar denominated) are paying close to 4%, and looking to increase in advance of any overnight rate increases from the Federal Reserve. The U.S. note yield will draw in buyers of the dollar, at the same time that sellers of the dollar buy commodities and equities.

This strength of Usd separation does not often happen, and normally only at the trough and the peak of global business cycles, as traders are seeing right now. The markets are at a swing point where the global business cycle is looking to move into a phase of expansion, and as such each region now has to set fair value on its currency, as the market moves away from dollar index trading, and moves towards individual interest rate differentials to value forex pairs.

The major pair 4

Forex Time Machine – Your Gateway to Fx Profits

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