- The dollar loses ground due to a fall in Treasury bond yields.
- Euro also advances against the pound.
- Sharp drop in equity markets.
The EUR / USD approached 1.1300 and hit a week high on Friday buoyed against a backdrop of sharp decline in global equity markets and rising government securities. The drop in Treasury yields weakened the dollar against the euro, fueling the pair’s breakthrough.
EUR / USD recently hit 1.1294, the highest since last Friday. It is trading at 1.1275, up 70 pips from yesterday’s close. The key factor is being the weakness of the dollar against the main European ones.
The new variant of COVID It has generated fears in the markets, manifesting itself mainly at the moment in a collapse in the European stock markets, where there are indices that lose more than 4%. Even so, the euro is stronger against the dollar and the pound, but not against the Swiss franc and the yen.
The The 10-year US rate went from 1.70% to 1.50%. This big change left the dollar weak, even despite risk aversion. In turn, the EUR / GBP break above 0.8430 gave the euro even more push.
The operation on Friday is expected to have a low volume as it will be a limited day on Wall Street. Without US economic data, the focus in question will continue on the bags and the possible announcements by the COVID.
Technical levels
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