EUR/USD trims losses and regains the 1.0980 region.The dollar gives away part of the initial strong advance.German 10y bund yields rose to 0.63%, or multi-year peaks.Following an early drop to the proximity of 1.0940, EUR/USD regains some composure and now retargets the key barrier at 1.1000 on Monday.
EUR/USD: Next on the downside comes 1.0900.EUR/USD now alternates gains with losses in the sub-1.1000 region on the back of the unabated upside bias in the greenback.
Indeed, extra gains in the buck remain propped up by the march north in US yields along with markets’ expectations of tighter rate path by the Federal Reserve, while the absence of news from the Ukraine war appears to sustain a cautious note in the risk complex.
EUR/USD comes under further downside pressure and revisits the 1.0950/40 band in response to the firmer demand for the greenback at the beginning of the week. Occasional pockets of strength in the single currency should appear reinforced by the speculation of the start of the hiking cycle by the ECB at some point by year end, while higher German yields, elevated inflation, the decent pace of the economic recovery and auspicious results from key fundamentals in the region are also supportive of a rebound in the euro.
EUR/USD levels to watch
So far, spot is retreating 0.10% at 1.0970 and faces the next up barrier at 1.1037 (high March 25) followed by 1.1137 (weekly high March 17) and finally 1.1211 (55-day SMA). On the other hand, a drop below 1.0944 (weekly low March 28) would target 1.0900 (weekly low March 14) en route to 1.0805 (2022 low March 7).
EUR/USD rebounds to 1.1000 as Treasury yields retreat.EUR/USD is tackling 1.1000, rebounding from two-week lows, as the market mood improves in the European trading. The US 10-year Treasury yields retreat from a three-year high, offering support to the euro. Although the US dollar trades firmer, keeping the further upside elusive in the pair.
USD/JPY keeps rallying towards 125.00 on BOJ’s unlimited bond buying.USD/JPY is rallying hard towards 125.00, hitting the highest level since August 2015. The BOJ offers to buy consecutive and unlimited Japanese Government Bonds (JGBs) for the first time ever to defend its yield target at 0.25%. The Fed-BOJ monetary policy divergence is smashing the Japanese yen.
Gold drops to multi-day low, below $1,930 level amid stronger USD.Gold witnessed heavy selling on Monday and reversed the recent gains to a near two-week high. Hopes for a diplomatic solution to end the war in Ukraine undermined the safe-haven XAU/USD. Hawkish Fed expectations, rising US bond yields, stronger USD added to the intraday selling bias.