Negative dynamics of the bond market | 26 Tháng sáu 2019

26 Tháng sáu 2019, USD/JPY

Negative dynamics of the bond market

USDJPY trading plan:

The yield of two-year government bonds is 0.639% lower than the Federal Reserve rate. This is a negative signal for the U.S. currency! Investors are forced to sell's dollars and direct capital to other assets. The decrease in bond yields is caused by negative macroeconomic statistics of the real estate market. The Commerce Department said a new home sale dropped 7.8% to a seasonally adjusted annual rate of 626,000 units last month, the lowest level since December. The median new house price declined 2.7% from a year ago to $308,000 in May. The 30-year fixed mortgage rate has tumbled to around 3.84% from near an eight-year high of 4.94% in November. The housing market has remained sluggish even as mortgage rates have dropped, with builders continuing to complain about land and labor shortages.

Trading recommendation: Sell 107.60 and take profit 107.25.

David Johnson
Analyst of «FreshForex» company
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