Traders are avoiding debt | 25 tháng tư 2023

25 tháng tư 2023, GBP/USD

GBPUSD trading plan:

Rising concerns that the U.S. Treasury Department could hit its debt limit in the coming months are leading investors to shun certain Treasury bills and pour into others as they seek out low risk places to park cash. Congress will need to raise the U.S. debt ceiling or risk a catastrophic debt default, with analysts predicting the Treasury is most likely to run out of funds in July or August. As a result, some investors are avoiding debt that comes due in this timeframe. But they are also seeking safe places to park cash. That has led one-month bill yields to tumble, and the spread between one-month and three-month bills to expand to its widest level since the one-month bills were introduced in 2001. The market is nervous and is avoiding the debt ceiling issues and has unfortunately nowhere to go because bill supply continues to be cut.

Investment idea: buy 1.2440 and take profit 1.2510.

David Johnson
Analyst of «FreshForex» company
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