The Euro fell after rising yields on 10-year treasuries
The U.S. dollar retreated, but remains high positions against other major currencies during the trades on Tuesday. The yield on 10-year Treasury is still near the key level of 3.0%, above which the figure rose from December 2013. Passage through this boundary will be accompanied by a new wave of demand for the dollar on the background of the returning themes of the divergence of the courses of the monetary policy of the fed and other Central Banks of the world.
EURUSD today updated nearly 2-month lows under the 1.22 mark and trying to cling to the psychological level, near which passes the 100-day moving average. Violation of the integrity of this zone is a bearish technical signal for the single currency, which can resume the decline and challenge the lows at 1.2150, the loss of which will open the way to new victories for the dollar.
The pretext for the implementation of this scenario would be the ECB meeting this Thursday. Statistics from the Eurozone continues to cause concern, pointing to signs of a slowdown in economic growth in the region this year.
Today’s release is no exception: the IFO sentiment in Germany was disappointing on all fronts and was below not even the most optimistic forecasts. Given the worrying economic signals at the upcoming meeting, Draghi is likely to demonstrate the “pigeon” rhetoric, and Express concern about the health of their economies and conflicts in the world.
Analyst social network for investors
eToro in Russia and the CIS