Summary :
“Moreover, bear markets always ended after the Federal Reserve cut, which likely is at least six months away – BofA house view is for a first cut in 3Q23.”
Bond markets have also been rallying hard, with U.S. 10-year yields falling 35 basis points last month for the biggest decline since the start of the pandemic. The dollar was last down at 132.85 yen , having shed a sharp 2.1% last week.
The dollar fared better on the euro, which has a European energy crisis to contend with, and made hardly any headway last week.
For now, the drop in the dollar and yields has been a relief for gold which is up at $1,762 an ounce after bouncing 2.2% last week.
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