EURUSD is under the most significant pressure in the 4 previous months amid the growing demand for “safe haven” assets.
The major currency pair continues falling. The current quote for the instrument is 1.1813.
So, the pair is updating its four-month lows and remains under significant pressure due to several reasons at once. One of them is another rally in the US bond yield profitability, which supports the “greenback” pretty much. Another reason is the growing demand for “safe haven” assets, including the USD, because investors are starting to worry about a possible tax increase in the USA. There will be more information about this the next week.
Yesterday, we heard a couple of speeches from US Secretary of the Treasury Janet Yellen and US Federal Reserve Chairman Jerome Powell. This time, Powell said that in order to recover quickly, the country’s economy required, among other things, a strong tax and budgetary policy. At the moment, the regulator is expecting a slight decline in the unemployment rate due to the increase of the economically active population.
The statistics published yesterday weren’t too great. For example, numbers from the Euro Area couldn’t support the Euro despite being quite good. The Services PMI showed 48.8 points in March after being 45.7 points the month before. The Manufacturing PMI went from 57.9 points in February to 62.4 points this month, which is very positive. However, it seems like market players believe it to be a temporary phenomenon but not a tendency.
The Durable Goods Orders in the USA dropped 1.1% m/m in February after adding 3.5% m/m in January and against the expected reading of 0.7% m/m. The indicator is quite volatile but this decline might have something to do with the cold and snowy winter in the country.
Later today, the USA is scheduled to publish the final GDP report for the fourth quarter of 2020. The previous estimate was 4.1% q/q. The stronger the reading, the better for the “greenback”.
Orgin: RoboForex
