A reliable signal of upcoming recessions | 05 Julio 2023

05 Julio 2023, GBP/USD

GBPUSD trading plan:

The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, rose 3.6 basis points at 4.91%. The yield on 10-year Treasury notes was up 1.2 basis points to 3.83%. The spread between 2 and 10-year Treasuries has been inverted since last July. A yield curve inversion - in which shorter-dated Treasuries trade at higher yields than longer-dated securities - has been a reliable signal of upcoming recessions. The 2/10-year yield curve has inverted six to 24 months before each recession since 1955, according to a 2018 report by researchers at the San Francisco Fed, offering only one false signal in that time.

Investment idea: sell 1.2722 and take profit 1.2650.

David Johnson
Analyst of «FreshForex» company
¿De acuerdo con la revisión?
Opinión de los comerciantes:
Close
Iniciar sesión
Su navegador no admite cookies. Si la cookie está desactivada en su navegador de Internet, es posible que tenga problemas con la representación del área Personal. Cómo habilitar el soporte para cookies.