The cost of borrowing dollars abroad | 18 Marzo 2020
18 Marzo 2020, GBP/USD
GBPUSD trading plan:
The yield on benchmark U.S. 10-year Treasuries jumped 40 basis points higher overnight, the largest single-day rise since 2004 - further illustrating how massive selling is testing liquidity in even the deepest and broadest markets. The higher yield also adds yet more attraction to owning dollars, amid growing signs of tight supply - especially abroad. Cross-currency basis swap spreads, which show the cost of borrowing dollars abroad, hit their widest in years. This is a positive signal for the U.S. currency!
Trading recommendation: Sell 1.2095 and take profit 1.2045.
The author's opinion reflects their personal view and is not an investment recommendation. The company is not responsible for any trading results based on the provided analytical data.
