EURUSD is falling again under the attack of the “greenback”.
The major currency pair is starting another March Monday with a decline under pressure from the USD. The current quote for the instrument is 1.1935.
The American currency became more active when the US 10-year bond yield resumed growing. this improvement once again raised concerns about inflation boost in the USA a sellout of risky assets. Taken together, these factors helped the USD to recover as a “safe haven” asset.
In the nearest future, the USD may mostly focus on the bond yield, new highs in which won’t be a surprise to anyone.
Also, one should note that the American currency is well supported by the US Fed and Government policy, while the approach of the ECB with its variety of supporting tools is looking rather weak. Last week, the European regulator decided to print more money to support the region’s economy and expand the PEPP program, thus putting pressure on the Euro.
Inflation boost in the USA is becoming more and more topical, especially after the approval of the $1.9 trillion stimulus package by the US Government – this topic will get much attention in the nearest future.
Orgin: RoboForex
