Current trends:
DXY downtrend
US02Y stopped its upward trend
US10Y downtrend
(Backtest graph below)
#market #economy #presentTrading #crypto2023
Impact on the market
1. DXY downtrend leads to a weaker USD, which can make US assets more attractive to foreign investors, potentially increasing demand for risk markets.
2. Lower interest rates lower borrowing costs for businesses, which could increase investment and growth, potentially driving up prices in the risk market.
The halt in the upward trend of the US02Y (2-year treasury yield) suggests that the market is less concerned about short-term inflation expectations and more willing to invest in higher-risk assets. The US10Y is a long-term expectation.
How does this impact the crypto market?
-> It's a positive to risk market.
Weaker USD and lower interest rates can lead investors to seek higher-risk investments, including crypto.
"Loss small, win big." #presentTrading
NFA
