Is the Dollar Going to Follow Yields? 📈 The Chart Report
Chart of the Day
🏆 Today's Chart of the Day was shared by Matt Weller.
Markets have largely brushed aside two days of negative inflation headlines, even as both the 10-Year and 30-Year Treasury yields made new highs today.
Since the start of May, the U.S. Dollar Index has diverged from the 2-Year Yield and is now trying to break through its pivot highs around 98.500.
The Dollar has also recently flashed a bullish momentum divergence, and if follow-through develops, renewed Dollar strength could become a notable nuisance for both stocks and commodities.
The Takeaway: If the Dollar confirms its momentum shift, markets may face a tougher macro backdrop driven by higher yields and tighter financial conditions.
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