And the selloff began. Global bonds experienced an aggressive selloff Thursday that drove steep losses in Treasuries and U.S. stocks. The benchmark Treasury yield spiked to a one-year high and the U.S. dollar in turn benefited from rising yields. Also, the British pound which was already extremely overbought experienced a sharp selloff, succumbing to the dollar’s rise.
Unlike the strong correction seen in GBP/USD which fell below 1.40, the EUR/USD refrained from a steep decline, still holding above 1.21. If the euro falls below 1.2090 it may extend the decline towards 1.2060 and 1.20.
In the GBP/USD we now see a support at 1.38.
The DAX fell victim to Thursday’s selloff and slid below 13800 towards 13680. A next lower target is now seen at 13600 followed by 13400. Buyers in the DAX will need to wait for another breakout above 13800 in order to expect a higher target at 14000.
We wish you good trades for the last trading day in February and a peaceful weekend!
- Subscribe to our daily signal service
We wish you good trades!
Any and all liability of the author is excluded.
Copyright © All Rights Reserved 2021 MaiMarFX.
Follow us on social media: