From the desk of Steve Strazza @Sstrazza and Ian Culley @Ianculley
The US 10-year yield has made a decisive move back above 1.40% in recent sessions.
We’ve been pounding the table about this critical level for months now–and for a good reason. It’s a vital component of the global growth narrative and rotation into cyclicals.
And most investors probably aren’t prepared for it!
Yesterday, JC and Steve discussed areas that demand attention in a rising rate environment and how we should position ourselves. You can check it out here.
Think cyclical and value stocks. And don’t forget economically sensitive commodities like energy and base metals.
But what about currency markets?
For starters, most currencies versus the US dollar should be beneficiaries of rising rates. This is particularly true for commodity-centric currencies like the Australian dollar, the Canadian dollar, the Russian ruble, and the South African rand.
With the US dollar Index $DXY still pressing on the upper bounds of its year-to-date range, let’s check out some other currencies that are offering trading opportunities in this new rising rate environment.
This week, we’ll look at the Norwegian krone versus its neighbor, the Swedish krona NOK/SEK.
