Yield curve inversion | 02 Octubre 2023
02 Octubre 2023, EUR/USD
EURUSD trading plan:
The Federal Reserve indicated that interest rates will remain higher and it will take longer to bring inflation in line. The yield curve continues to dis-invert with longer maturity securities selling off more than shorter maturity Treasury securities. Bear steepening is far less frequent and usually doesn’t persist long term, so we think ultimately this current move will be short-lived, but as long as the curve remains deeply inverted, upward pressure on long-term yields may remain. This is a positive signal for the dollar.
Investment idea: sell 1.0600 and take profit 1.0535.
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.
