U.S. Treasury rates have fallen sharply from their cycle highs set in October on bets that the Fed would ease its stance aggressively next year. Their relentless slide accelerated Wednesday in thin markets ahead of the New Year’s holidays, with the 2- and 10-year yields sinking to multi-month lows, as seen in the chart below.
Falling yields sent the U.S. dollar plummeting, driving the DXY index to its weakest point in five months. Against this backdrop, EUR/USD, GBP/USD and gold prices rallied, overcoming important hurdles in the process. Below we analyze each of them separately from a technical standpoint.
