Fri, Jan 21, 2022 @ 02:04 GMT
HomeLive CommentsDollar falls on cautious Fed Brainard, 30-yr yield hits record low

Dollar falls on cautious Fed Brainard, 30-yr yield hits record low

Dollar reverses some of this week’s strong gains as pressured by surprisingly cautious comments from Fed Governor Lael Brainard, in the background of record low in 30-year yield, below 1.9 handle.

Brainard said in a speech that “with trend inflation running below the symmetric 2 percent objective, there is a risk that inflation expectations have slipped. . And, “with price inflation showing little sensitivity to resource utilization, policy may have to remain accommodative for a long time to achieve 2 percent inflation following a period of undershooting.”

Meanwhile, 30-yaer yield hits new record low at 1.892 today. The development argues that TXY might even be resuming long term down trend. it’s a bit early to say. But we’re tentatively looking at 61.8% projection of 3.455 to 1.905 from 2.393 at 1.435 at the next medium term target.

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