The US 10-year treasury yield has dropped to a two-week low of 1.763% and has shed over 20 basis points since topping out at 1.972% on Nov. 7. Further, the US-China political tensions are weighing over risky assets. Therefore, the lack of clarity on the US-China trade talks weighed on the market sentiment and led to another correction lower in the US Treasury bond yields, which eventually exerted some pressure on the greenback.
That said, the tide will likely turn in favor of the bears if the minutes of the FOMC’s 29-30 October meeting, due at 19:00 GMT, sound hawkish.
The hawkish tone, however, needs to be strong, as the financial markets have written off interest rate cuts by the Fed all the way until June of 2020, as pointed out by popular analyst Mike “Mish” Shedlock.
EUR/USD SHORT (Sell)
ENTER AT: 1.10740