Thursday ended with the EUR/USD being high above of local resistance of 1.10. What's the target now?
Greenback dives as American bond revenues decline
On Monday, the evergreen buck dived, losing some of its recent momentum because American bond revenues dipped, although moves were tamed by caution ahead of Federal Chair Jerome Powell's first congressional testimony.
The measure utilized to gauge the US currency’s value versus a group of key currencies, the US dollar index declined 0.1% hitting 89.775. The previous week the indicator soared almost 0.9% and drifted away from a three-year dip of 88.25 reached on February 16.
A view that the greenback’s sell-off had appeared to be overdone, in addition to the minutes from the Fed's January rate-setting gathering, which offered a relatively positive tone, gave the greenback a lift the previous week.
This week market participants will closely watch Powell's congressional testimony on the US economy and monetary policy.
Versus the Japanese yen, the evergreen buck dived 0.3% hitting 106.61 yen.
Some financial analysts told that the major US currency was suppressed by a dive in the American 10-year Treasury revenues.
On Monday, the American 10-year Treasury revenue lost a bit in Asia, getting to 2.866%, thus proceeding with a dive from the four-year maximum of 2.957% hit on Wednesday.
Market experts hope Fed Chair would be reluctant to send a hawkish message, not to have bond as well as equity markets unsettled.
The common currency strengthened 0.1% being worth $1.2308, having dived 1% the previous week because investors turned cautious on the common currency prior to the Italian general election on March 4.
The British pound soared 0.2% hitting 1.3999.
The British pound was underpinned after Dave Ramsden, the Bank of England's Deputy Governor was referred to by the Sunday Times, in Saturday’s an interview, telling that interest rates might require going up sooner than previously anticipated if wages tack on as fast the country’s major financial institution expects in the early part of this year.
Let’s look what moves the market today.
The European Central Bank will publish the main refinancing rate and make a statement on Thursday, June 4, at 14:45 MT time. Also, the ECB press conference will be later at 15:30 MT time.
EUR and gold moved up