This past Wednesday we heard from federal reserve chairwoman Janet Yellen, who’s somewhat hawkish tone caused a sudden sharp spike with regard to the US dollars value.
Well here we are now just two days later and the US dollar has already given back more than half of those gains.
As a matter of fact, I said specifically and publicly that I did not believe that the US dollar would hold those gains moreover, the action in the bond market is equally as interesting.
Janet Yellen‘s Comments, again being somewhat hawkish, caused a rapid and sharp spike in bond yields however, this is also reversing as cash is again making its way back into bonds-which I also said would likely happen...
It seems that the markets are again unsure about what the federal reserve is actually going to do moving forward, and the reason for that is quite obvious-the federal reserve itself never had a plan to unwind its balance sheet and has since revised it’s rate hike schedule multiple times despite promising more hikes moving forward...
Gregory Mannarino
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