The Most Important Market Shift You Need to Know Right Now

Here’s what you need to know...

Alright, you’re about to see the single most important piece of market intel right now.

Seriously!

Let me show it to you first.

And then I will explain you why it’s so important.

Here it is:

Ok!

That’s Treasury Secretary Bessent on Bloomberg market surveillance about a week ago.

What is he saying?!

The US administration’s top priority is lowering US yields.

That’s it.

That’s the gameplan.

Perfect!

Now, you are thinking:

“But I DON’T trade bonds, I trade FX, why should I care?!”

Ehm…

In orange you can see the US10y yield, compared to USDJPY (candlestick).

It matters, a lot!

And the same is true for all other JPY pairs.

But let me get VERY practical:

When US yields drop, a few very important things happen.

Bullish for GOLD.

Bearish USD (tho it depends)

Bullish JPY.

Bullish risk assets (tho this also depends on whether the move lower in yields is caused by recessionary fears or not)

In other words…

We can zoom in on the two cleanest trades from this whole context:

Higher GOLD.

Higher JPY.

So there you have it…

Not much else to add.

I usually like to say:

“Don’t fight the FED”

Well…

In this case I’ll say:

“Don’t fight the current US administration”

They’ll get what they want.

Which is?

Lower yields.

Which will lead to?

Higher GOLD.

Higher Japanese Yen.

Those will quite likely be the two biggest (and most obvious) trends over the next 6 to 12 months.

Just saying.

With that said…

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Oh and by the way…

A couple of hours ago we posted a fresh new educational video on our Youtube channel.

It’s an actionable strategy that you can implement right away!

You can find the full video here.