US Market Update – Caution As Yields Rise

Updated: Jan 13

Investors concerned about taper tantrum?

European stocks ended slightly lower on Tuesday and the US is on course for similar losses as investors continue to take a cautious approach at the start of the week.

I wouldn’t go as far to say they’ve been shaken by any particular event but there does appear to be a little less enthusiasm this week. Rising US yields may be weighing a little, the prospect of a taper tantrum perhaps unsettling investors. That may be a little overblown at this point, with the prospect of monetary tightening some time away still. Policy makers are more optimistic about the outlook though and that will only be fueled further by a big stimulus package from the new Biden administration. The US economy has been resilient and is in a strong position to lead the recovery.

The economic situation in the UK is more severe and the recovery may be more challenging but based on Andrew Bailey’s comments today, negative interest rates are still not the favoured policy response for now.

There’s been a lot of talk about the preparedness for negative rates, viewed by some as a sign that the central bank is going to become the latest adopt it but it seems that’s not on the horizon afterall. The pound rallied on the comments, climbing back above 1.36 against the dollar in the process.

1 view0 comments



Trading involves the possibility of financial loss. Only trade with money that you are prepared to lose, you must recognize that for factors outside your control you may lose all of the money in your trading account. Many forex brokers also hold you liable for losses that exceed your trading capital. So you may stand to lose more money than is in your account. Smart Analysis Pvt takes not responsibility for loss incurred as a result of our trading signals. By signing up as a member you acknowledge that we are not providing financial advice and that you are making a the decision to copy our trades on your own account. We have no knowledge on the level of money you are trading with or the level of risk you are taking with each trade. You must make your own financial decisions, we take no responsibility for money made or lost as a result of our signals or advice on forex related products on this website.


Credit  & Debit Card

  • Black Facebook Icon
  • Black Instagram Icon
  • Black YouTube Icon

© 2023 by Personal Life Coach. Proudly created with