breakout in progress

The Dollar basket is currently on the verge of a breakout, which is likely to lead to a substantial correction in EURUSD and GBPUSD currency pairs. A notable indicator of this trend is the US2YR yield, which has surpassed 4.5% after hovering around 3.5%. Many market participants had previously anticipated rate cuts by the Federal Reserve during the summer.

Now, the focus shifts to the potential reaction of equities. Will there be a 5% correction, or will we witness new highs driven by expectations of future rate cuts as the United States inevitably heads into a recession?

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Considering last night Feds speak, June rate hike will be skipped, meaning a swift reversal