“Financial markets will be watching the 3% key level on the 10 Year Treasury Bond.”
The Market has no high impacting news to drive it on Monday, however, I do believe rising US Treasury yields will be a headline grabber early this week if the 10 Year Treasury yield rises and closes over 3% in the coming 24 to 48 hours. A rising US 10 Year Treasury yield means there is more money coming for US Government debt and if the yield continues to rise the guaranteed 3% return investors get is going to be attractive for many hedge funds and wealth funds opposed to a rocky stock market early in 2018. So, what I believe we will likely see is a continued rotation from perceived risky stock investments back into fixed income along with Gold and other safe-haven assets. This has the potential to push up the US Dollar in coming weeks and if you follow the Bullish N Bearish indicator list of currency pairs below the US Dollar has recently been shifting from bearish to bullish.
The US Dollar finished the week strongly with the Kiwi and Aussie Dollars falling sharply towards the back end of the week. The fundamental trend is what you want to be following and matching this up with a technical trend and applying great reward to risk on your trades. You must have conviction in your strategy and approach and not waver like most traders do the moment financial markets have one day of gains or declines. A continual wavering in the approach to how you trade will see you self-sabotage trades and you could end up spinning your wheels making the broker very happy as you watch your trading account dwindle. Did you watch Friday Live where I gave out one single trading tip that could completely change your trading results?
The week will get busier as the days roll on with the European Central Bank and Bank of Japan to report in the back half of the week. It is a busy week of economic data beginning tomorrow with the latest quarterly inflation report for Australia. In Sunday’s Forex Trades Pre-Market Prep session video, I explain some important correlations to watch early this week and why I intend to exit some of my volume on the NZD v JPY and how and when I will re-enter when price falls again.
Each day on the trainwithandrew social media channels as well as on the Trade Time app I will be posting a short video on Fundamental Facts to better help traders understand how financial markets react to the fundamental news. Novice traders rarely spend any time learning how financial markets really work and most of the time they are being sucked into technical analysis, thinking a pattern on a chart is going to tell them where price is going next. Learning to understand the fundamentals of the market and how price action works is the big key to creating sizable profit-making opportunities. The first Fundamental Fact video will be available around 2.00pm AEST today.
About the Author: Andrew Barnett
Andrew is a professional trader and successful investor who has a strong focus on education. He is a regular Sky News Money Channel Guest and one of Australia’s most awarded and respected financial experts and is regularly contacted by the Australian Media for the latest on what is happening with the Australian Dollar. Director at LTG GoldRock, Andrew Barnett, guides thousands of traders around the world in the live market on a daily basis, advising them on buy and sell directions, as well as trading his own personal account. Andrew, a regular keynote speaker at trading and wealth-creation events throughout the Asia Pacific region, is an authorized representative registered with the Australian Securities and Investment Commission (ASIC).
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