"Mental Resilience comes from training the mind day in and day out" Price action: After the initial sell off in risk assets into the Asia open yesterday, markets reversed overnight on Fed Speak. Fed's Jefferson echoed the comments from Fed's Mary Daly last week wherein the recent rise in long term yields has tightened financial conditions and done part of the job for Federal Reserve. The FFR saw repricing - the market is now pricing in a 13% probability of a rate hike as against 27.10% on Oct 6. The Dec 24 pricing shifted 17 bps lower with market pricing shifting from 4.72% on Friday to 4.55% as at close of yesterday. The move lower in UST yields saw USD reverse gains into the close. With Geopolitical risks lurking in the background after the surprise attacks by Hamas on Israel, the USD reversal came as a surprise. It is too early to call how the events unfold in the next few days and weeks and does the recent conflict escalate into a more broader conflict. So far pr...
The specific focus of the Blog is on Global and Domestic interest rates and currencies market. I look at fundamentals to define my bias and corroborate that with a study of price action to put on high conviction trades. The views and opinions are those of author and author alone. ~ Author: Vaishali Bagchi