GBP/USD Weekly Forecast: GBP/USD, EUR/GBP Reversal, Now What? 2021-02-26 16:00:00 Justin McQueen, Analyst
Positioning Clear Out Likely Entice Dip Buyers
BOND MARKET TANTRUM: Equity markets finally listen to the noise that the bond market have been making, however, the Fed are still not listening. Quite the move on as the US 10yr hit the milestone of yielding 1.50%, moving above the S&P 500 dividend yield of 1.48%. Subsequently, this places a TINA (There Is No Alternative) headwind for the stock market, which has up until now, enjoyed the low rate environment. The tech sector endured most of the selling pressure with the Nasdaq falling over 3%, particularly after the worst 7yr auction in history, which kickstarted a bid in the greenback and sent EM FX heavily lower.