The Euro is declining because of rising us yields

  • And
  • +A

On Friday, March 16, during the European trading the pair of EUR/USD hits fresh session high at 1,2336 to the General weakening of the U.S. dollar, an increase in core cross-pairs with the Euro and lower yields on 10-year bonds. The strengthening of the single currency slowed down around the resistance area 1,2340/1,2350 that spoke support.
The United States published construction data for February. Data came out worse than expected and previous values. The market reacted calmly. The next block of statistics will release data on industrial production and consumer confidence from the University of Michigan. They are unlikely to cause strong market movements.
Before the FOMC meeting, which will take place on 21 March, traders in all the published news are trying to discern the signals that indicate the number of raises rate hike this year. Markets mortgage rates raises rates, the U.S. Federal reserve, while the ECB will keep it at a low level for a long time. According to the latest CME FedWatch Tool, the futures rate consider rate hike the fed by 0.25% on March 21, at 91.6%.
The latest quotations has increased dramatically the yield on 10-year bonds. In this regard, a pair Euro/dollar continues to expect decline in the district 1,2274.
The European statistics:
Consumer prices in Europe for February amounted to 0.2% mom, 1.1% yoy (consensus: 0.2% m/m, 1.2% yoy, previous reading was 0.9% m/m, 1.3% y/y).
Vladislav Antonov,