Few forex traders focus on the bond market, yet it is one I have highlighted consistently both here and on my site, and more importantly in the complete forex education program where its significance is explained in detail. The bid-to-cover ratio is key and explains whether the take up in the bonds on offer is strong or weak and hence sentiment. Today it is the 10-year note which takes center stage with the 30-year note tomorrow. As you would expect the impact on the US dollar is immense which in turn flows into related markets in terms of risk sentiment defined by yield. Relational analysis is one of the key modules within the program and looks at those between bonds, forex, stocks, and commodities.
From there we explain the key five chart set up for trading forex and how to time entries and exits.
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