EUR/USD is hanging in around 1.06. Economists at Société Générale expect the pair to move back higher toward 1.10 by the end of March. Yield differentials are wind in the Euro’s sails.
“We argued that a bit of risk aversion and wider credit spreads could take EUR/USD to 1.06 (and GBP/USD below 1.2). Both went marginally further, and we could still see some wobbles in the days ahead but yield differentials should start to matter again and I expect we’ll be climbing back towards EUR/USD 1.10 by the end of March.”
“As for Sterling, everything now depends on DUP support for the Windsor Framework. Some negotiation may be required, but if support is forthcoming, we might see EUR/GBP get back below 0.86.”
EUR/USD clings to gains near 1.0600 ahead of US data
EUR/USD holds in positive territory slightly above 1.0600 heading into the American session on Tuesday. The pair gathered bullish momentum following hot inflation figures from France and Spain earlier in the day. The US economic docket will feature the CB Consumer Confidence Index.
EUR/USD News
GBP/USD rebounds to 1.2100 on Brexit deal optimism
Following a consolidation in the Asian session, GBP/USD has gathered bullish momentum and advanced to 1.2100. The US Dollar’s uninspiring performance ahead of the mid-tier US data and renewed optimism about UK and EU finalizing the new Brexit deal help the pair push higher.
GBP/USD News
Gold struggles to gain traction, trades near $1,810
Gold price is having a difficult time building on Monday’s modest recovery games. The benchmark 10-year US Treasury bond yield clings to small gaily gains above 3.9%, limiting XAU/USD’s upside as focus shifts to US Consumer Confidence data.
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