Correlation just isn’t causation, nonetheless, when you’ve got such sturdy correlations available in the market, you need to pay attention to them. That’s the case with the US treasury markets and the . Though the markets are watching carefully to see if the USD/CNH breaks key resistance close to the 7.3800 degree, the bond market is fastidiously watching US yields to see in the event that they break increased out of resistance as nicely.
When you lay them on prime of one another, you’ll discover the charts have a really sturdy correlation. That does not imply if one breaks (increased), the opposite would as nicely. But when one does (yields or USD vs. CNH), I certain would put the opposite (, or USD/CNH) on my instant watchlist.
