EUR/USD to drift higher later in the year.

In February, the Euro weakened further versus the US Dollar moving from 1.0866 to 1.0612. Economists at MUFG Bank expect the world’s most popular currency pair to move back higher later in the year.

“As we had expected, the US Dollar has rebounded and EUR/USD is set to fall modestly further from here as inflation risks turn higher again. However, despite the substantial jump in US yields, spreads with Europe have moved only modestly and in general, EUR/USD is trading at an appropriate level based on historic spreads.”

“The end of negative rates in the Eurozone and the scope for Eurozone equity outperformance relative to the US point to the potential for EUR/USD to grind higher later this year. The ECB is set to be on hold for longer than the Fed.”

EUR/USD tests 1.0600 after US data

EUR/USD came under renewed bearish pressure and declined below 1.0600 in the early American session on Thursday. After the data from the US showed that Unit Labor Costs increased at a stronger pace than expected in Q4, the US Dollar gathered strength against its rivals.

EUR/USD News

GBP/USD extends slide below 1.1950 amid renewed USD strength

GBP/USD continued to stretch lower and declined below 1.1950 on Thursday. Upbeat employment-related data releases from the US seem to be providing a boost to the US Dollar in the second half of the day and weighing on the pair.

GBP/USD News

Gold retreats to $1,830 as US yields push higher

Gold price lost its traction and declined toward $1,830 in the early American session on Thursday after having recovered to $1,840 earlier in the day. The benchmark 10-year US Treasury bond yield is up nearly 2% on the day above 4%, forcing XAU/USD to stay on the back foot.