United Overseas Bank strategist says the USD index may enter a consolidation or mild correction phase
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AT A GLANCE
The report said that the USD index's momentum is weakening, with consolidation or a mild decline possible; US Treasury yields above 5%are not historically abnormal.
Article
Opinion: The breakout in US Treasury yields 5%is not abnormal,USD and the index may enter a consolidation or mild correction phase in the short term
PANews October 14 reported that Quek Ser Leang, senior technical strategist at United Overseas Bank's Global Economics and Markets Research department, said in a report that USD the index's upward momentum is beginning to weaken, indicating that its room for further gains may be limited. Judging from the recent price action on the daily chart,USD the index's rally that began last month may be shifting into a consolidation phase or showing mild weakness. If USD the index falls further, it could decline toward the 101.50 21 day EMA level currently located at. Joanne Bianco, senior investment strategist at BondBloxx Investment Management, pointed out that although US Treasury yields currently above 5%may appear high, historically the truly abnormal situation was the prolonged period of abnormally low interest rates after the global financial crisis, rather than today's high yield levels.
Quek Ser Leang, senior technical strategist at United Overseas Bank's Global Economics and Markets Research department, said that USD the index's upward momentum is beginning to weaken, and room for further gains may be limited.
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The report said that USD the index's rally that began last month may shift into a consolidation phase or show mild weakness.
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If USD the index falls further, it could decline toward the 101.50 21 day EMA level currently located at.
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Joanne Bianco, senior investment strategist at BondBloxx Investment Management, pointed out that US Treasury yields currently above 5%are not historically abnormal.
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Joanne Bianco believes that the prolonged period of abnormally low interest rates after the global financial crisis was the truly abnormal situation.
AI-assisted interpretation
The following is analysis, separate from reported facts. Verify important claims independently.
This opinion holds that the USD index's recent upward momentum is weakening, and it may move sideways or decline slightly in the short term; if it continues to fall, it may approach around 101.50. Another strategist believes that although US Treasury yields above 5%may appear high, they are not necessarily abnormal compared with long-term historical levels.
Why it matters to readers
USD The index may enter a consolidation or mild decline phase, while US Treasury yields above 5%are not necessarily considered historically abnormal.
USD The index reflects the strength of USD relative to a basket of currencies; the 21 day EMA is a trend reference line calculated from prices over the most recent 21 trading days. US Treasury yields can be understood as the return associated with holding US Treasury securities.
Risks and unknowns
The article uses strategists' opinions and technical assessments and does not confirm whether the USD index will actually consolidate or decline afterward.
The article does not provide independent market data to verify the relevant assessments.
The article does not state whether US Treasury yields will continue to rise or decline afterward.
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