We have seen the inflation move slightly lower in the US and we know that the FED would like to see the inflation hovering at about 2%. That means the forceful hiking of the interest rates seems to be doing their job, but it's likely not enough yet and we should expect the FED to hike a couple of times more in the first half of 2023. That is at least what the market is telling us as the 10-year US Treasury yield moved above the resistance line near 3.75% and we expect the US 10Y yield to continue higher towards the next target at 4.86% and possibly even closer to 5.81 before peaking in wave 5 and setting the stage for a larger correction.
However, for now, we should stay focused towards the upside as wave 5 progresses higher towards 4.86% and maybe even higher.
